Play Online Game #7, Incentives Game - Edubirdie

University:
Massachusetts Institute of Technology
Course:
15.992 | S-Lab: Laboratory for Sustainable Business
Academic year:

2023
Views:

58

Pages:

1
Author:

didactig075

Summary of Online Game 7 Game 7: A mechanism design (principal agent) problem In this timed game, you are the owner of a large pharmaceutical company looking to subcontract out a number of research projects, each with uncertain outcome, to outside R&D facilities. Each research facility, once hired, can choose either to put in routine effort (assign a normal staff to the project) or high effort (assigning its best researchers). Its choice will affect how likely the project is to succeed and earn a profit. You cannot monitor a facility's effort directly; all that you know is whether or not its project succeeds. You must offer all research facilities the same offer consisting of a base salary and bonus if the project is a success. What salary and bonus do you wish to offer?

Related Documents

Play Online Game #7, Incentives Game

Play Online Game #7, Incentives Game - Page 1

of 1

Recommended Documents

Secret Instructions for Josephine McNair

Secret Instructions for Josephine McNair

Massachusetts Institute of Technology 15.992 | S-Lab: Laboratory for Sustainable Business

Lecture Note

New Documents from this Course

Architecture and Communication

Architecture and Communication

Massachusetts Institute of Technology 15.992 | S-Lab: Laboratory for Sustainable Business

Lecture Note

Strategy and Design - Why Space Matters

Strategy and Design - Why Space Matters

Massachusetts Institute of Technology 15.992 | S-Lab: Laboratory for Sustainable Business

Lecture Note

Managing Communication

Managing Communication

Massachusetts Institute of Technology 15.992 | S-Lab: Laboratory for Sustainable Business

Lecture Note

Managing Service and Manufacturing Operations

Managing Service and Manufacturing Operations

Massachusetts Institute of Technology 15.992 | S-Lab: Laboratory for Sustainable Business

Lecture Note

Managing Teams

Massachusetts Institute of Technology 15.992 | S-Lab: Laboratory for Sustainable Business

Lecture Note

Managing Information

Managing Information

Massachusetts Institute of Technology 15.992 | S-Lab: Laboratory for Sustainable Business

Lecture Note

A Guide for Preparing Your Workplan

A Guide for Preparing Your Workplan

Massachusetts Institute of Technology 15.992 | S-Lab: Laboratory for Sustainable Business

Lecture Note

Industry & Societal Action - Collaborations

Industry & Societal Action - Collaborations

Massachusetts Institute of Technology 15.992 | S-Lab: Laboratory for Sustainable Business

Lecture Note

Green Buildings - New Markets and Services

Green Buildings - New Markets and Services

Massachusetts Institute of Technology 15.992 | S-Lab: Laboratory for Sustainable Business

Lecture Note

Sustainable retail. Can big box stores really go green

Sustainable retail. Can big box stores really go green

Massachusetts Institute of Technology 15.992 | S-Lab: Laboratory for Sustainable Business

Lecture Note

Organizational response

Organizational response

Massachusetts Institute of Technology 15.992 | S-Lab: Laboratory for Sustainable Business

Lecture Note

Bargaining Simulation General Instructions

Bargaining Simulation General Instructions

Massachusetts Institute of Technology 15.992 | S-Lab: Laboratory for Sustainable Business

Answer Key