The Cost of High-Powered Incentives: Employee Gaming in Enterprise Software Sales
The Cost of High-Powered Incentives: Employee Gaming in Enterprise Software Sales
复制标题
高强度激励的成本:企业软件销售中的员工博弈
DOI:
10.1086/673371
复制
发表时间:
2013
影响因子:
3.8
通讯作者:
Ian Larkin
中科院分区:
文献类型:
--
作者:
Ian Larkin
This article investigates the pricing distortions that arise from the use of a common nonlinear incentive scheme at a leading enterprise software vendor. The empirical results demonstrate that salespeople are adept at gaming the timing of deal closure to take advantage of the vendor’s accelerating commission scheme. Specifically, salespeople agree to significantly lower pricing in quarters in which they have a financial incentive to close a deal, resulting in mispricing that costs the vendor 6%–8% of revenue. Robustness checks demonstrate that price discrimination by the vendor does not explain the identified effects.