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11,955
result(s) for
"Commissions (Compensation)"
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Wage Transparency and Social Comparison in Sales Force Compensation
2020
When wages are transparent, sales agents may compare their pay with that of their peers and experience positive or negative feelings if those peers are paid (respectively) less or more. We investigate the implications of such social comparisons on sales agents’ effort decisions and their incentives to help or collaborate with each other. We then characterize the firm’s optimal sales force compensation scheme and the conditions under which wage transparency benefits the firm. Our results show that the work environment—which includes such aspects as demand uncertainty, correlation across sales territories, and the possibility of help/collaboration—plays a significant role in the firm’s compensation and wage transparency decisions. In particular, wage transparency is more likely to benefit the firm when demand uncertainty is low, sales outcomes are positively correlated across different sales territories, and sales agents can collaborate at low cost. We find that, contrary to conventional wisdom, social comparisons need not reduce collaboration among agents. Our study also highlights the importance of providing the right mix of individual and group incentives to elicit the benefits of wage transparency.
This paper was accepted by Juanjuan Zhang, marketing.
Journal Article
Platform-level consequences of performance-based commission for service providers: Evidence from ridesharing
by
Lahiri, Avishek
,
Doğan, Orhan Bahadır
,
Kumar, V.
in
Business and Management
,
Commissions
,
Commissions (Compensation)
2024
Ridesharing platforms compensate drivers using a fixed commission system that does not systematically reward effective drivers, which reduces platform engagement. Unsurprisingly, driver transaction activity is intermittent and service unpredictable. Influenced by agency theory, we propose a variable commission that jointly accounts for drivers’ transactions and service performance. To alleviate disengagement, we propose a customer-oriented engagement framework that challenges the notion of the sole monetary focus of drivers. We compare the effects of variable and fixed commission schemes on consequences such as driver net revenue and referral value, mediated by attitudinal outcomes. In a 3-month cluster-randomized field experiment with 3,367 ridesharing drivers across 16 cities and two population tiers, we show improvements in driver satisfaction and emotional connectedness accentuated by goal-oriented feedback. Variable commission with goal-oriented feedback translates to a 24.5% rise in revenue, a 19.5% increase in referral value, and a 43.21% lower churn. A cost–benefit analysis reinforces these results.
Journal Article
International Experience of Damages Compensation in Armed Conflicts: Lessons for Ukraine
by
Hartman, Yuliia
in
access to justice
,
Armed Conflicts - legislation & jurisprudence
,
Case Study
2025
Background Access to justice, enshrined as a fundamental human right in international conventions, includes the right to a fair trial and to just compensation. This dimension of justice is particularly crucial in contexts of armed conflict, where victims of military aggression require effective reparation mechanisms. Historically, both judicial and quasi-judicial bodies have been created to address mass claims, from restitution in Bosnia and Herzegovina, Kosovo, and Kuwait to processes in post-authoritarian or post-communist states. Such mechanisms highlight the need for specialised institutions, as ordinary courts are often unable to manage the volume and complexity of conflict-related claims. Since Russia’s full-scale invasion of Ukraine in 2022, reparations have become central to legal and political debate. Methods This study employed an empirical approach, combining systematic data collection with comparative legal analysis. Sources included UN and Council of Europe acts, reports by international organisations (CoE, OSCE), NGO publications, and scholarly works. Three compensation models were examined in depth: the UN Compensation Commission, Kosovo property claims mechanisms, and Bosnia’s Commission for Real Property Claims. These were selected for their effectiveness, European relevance, and addressed harms. Comparative analysis evaluated their procedures, accessibility, and recognition of harm, contrasted with Ukraine’s emerging compensation mechanism. Results The study highlights lessons from the UNCC, Kosovo, and Bosnia, focusing on mandates, procedures, accessibility, and types of harm recognised. It identifies best practices and challenges, offering comparative insights for designing Ukraine’s future compensation system. Conclusions International commissions share key features: defined jurisdiction, politically sensitive and lengthy processes, and reliance on transparent procedures to ensure legitimacy. For Ukraine, enabling direct individual claims is essential to uphold the right to reparation. Yet enforcement challenges and risks of duplicative proceedings remain. Adapting global experience to Ukraine’s context is crucial for developing an effective and trusted compensation mechanism.
Journal Article
Federal Trade Commission Bans Most Noncompete Agreements
2024
According to the FTC, noncompete agreements are \"an unfair method of competition\" and violate Section 5 of the FTC Act. [...]the American Hospital Association (AHA) said the final rule is \"bad law, bad policy, and a clear sign of an agency run amok.\" After the final rule was announced, Chad Golder, AHA general counsel and secretary, said in a statement that \"the agency's stubborn insistence on issuing this sweeping rule - despite mountains of contrary legal precedent and evidence about its adverse impacts on the health care markets - is further proof that the agency has little regard for its place in our constitutional order.
Journal Article
Dynamic Incentives in Sales Force Compensation
2016
To inform the design of sales force compensation plans when carryover effects exist, we propose a dynamic model where these effects, together with present selling efforts, drive sales. Our results show that a salesperson with low risk aversion exerts effort to decrease attrition from existing business, whereas a salesperson with high risk aversion does not. Why? Because carryover increases not only expected sales but also sales uncertainty. Consequently, the manager should incentivize the high risk-aversion salesperson with a concave compensation plan to counterbalance suboptimal customer attrition, and the low risk-aversion salesperson with a convex compensation plan that limits coasting on past efforts. We generalize our results to when the firm employs multiple salespeople, and when advertising and personal selling are budgeted together.
Journal Article
Et Tu, Agent? Commission-Based Steering in Residential Real Estate
by
Barry, Jordan M
,
Hatfield, John William
,
Fried, Will
in
Analysis
,
Commissions
,
Commissions (Compensation)
2025
Real estate agents are required to serve their clients' best interests. However, policymakers have long suspected that buyer agents steer their clients away from properties that offer low buyer agent commissions. They consider steering a key reason why agent commissions have remained high in the internet era, even as commissions in other industries have plummeted. Analyzing a new dataset, we provide the first systematic, nationwide evidence that buyer agents do in fact steer clients away from properties that offer low buyer agent commissions.
Journal Article
FROM LISTINGS TO LAWSUITS: THE FUTURE OF REAL ESTATE IS LOOKING MORE COMPETITIVE
Contemporaneous with the settlement, the Department of Justice Antitrust Division announced a renewed focus on NAR practices. Although the Antitrust Division has cast a skeptical eye on the industry throughout the past several decades, and although there have been some recent changes in Realtors' agency relationships, compensation structures for the industry were remarkably uniform even in the absence of any industry requirement to adhere to a particular pricing arrangement.
Journal Article
Teachers’ perspectives on pay incentives in England: performance evaluation in a context of high-stakes accountability
2024
This article examines a national policy of performance-related pay for teachers in the educational context of England, as understood in relation to the concept of New Public Management. Using a mixed methods approach employing surveys and in-depth interviews, the article considers the perspectives of working teachers, thus engaging directly with those who might be incentivized (or disincentivized) by performance pay. Significant implications for the broader international policy context are drawn in terms of teachers’ complex and problematic attitudes towards incentivization, particularly when performance pay is located within a wider agenda of New Public Management.
Journal Article