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dc.contributor.authorGarrett, Danielen_US
dc.contributor.authorPavan, Alessandroen_US
dc.date.accessioned2010-10-22en_US
dc.date.accessioned2012-07-12T12:33:32Z-
dc.date.available2012-07-12T12:33:32Z-
dc.date.issued2010en_US
dc.identifier.urihttp://hdl.handle.net/10419/59621-
dc.description.abstractWe characterize a firm's profit-maximizing turnover policy in an environment where managerial productivity changes stochastically over time and is the managers' private information. Our key positive result shows that the productivity level that the firm requires for retention declines with the managers' tenure in the firm. Our key normative result shows that, compared to what is efficient, the profit-maximizing policy either induces excessive retention (i.e., inefficiently low turnover) at all tenure levels, or excessive firing at the early stages of the relationship followed by excessive retention after sufficiently long tenure.en_US
dc.language.isoengen_US
dc.publisherNorthwestern Univ., Kellogg Graduate School of Management, Center for Mathematical Studies in Economics and Management Science Evanstonen_US
dc.relation.ispartofseriesDiscussion Paper, Center for Mathematical Studies in Economics and Management Science 1490en_US
dc.subject.jelD82en_US
dc.subject.ddc330en_US
dc.subject.keywordmanagerial turnoveren_US
dc.subject.keywordtermination clausesen_US
dc.subject.keyworddynamic mechanism designen_US
dc.subject.keywordadverse selectionen_US
dc.subject.keywordmoral hazarden_US
dc.titleManagerial turnover in a changing worlden_US
dc.typeWorking Paperen_US
dc.identifier.ppn637425286en_US
dc.rightshttp://www.econstor.eu/dspace/Nutzungsbedingungenen_US
Appears in Collections:Discussion Papers, Kellogg School of Management, Northwestern University

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