Self-control and incentives: An analysis of multiperiod quota plans

Marketing Science

Volumn 31, Issue 5, 2012, Pages 855-869

  Jain, Sanjay ^a  

^a TEXAS A AND M UNIVERSITY   (United States)

Author keywords

Behavioral economics; Compensation design; Game theory; Present biased preferences

Indexed keywords

EID: 84867564040     PISSN: 07322399     EISSN: 1526548X     Source Type: Journal    
DOI: 10.1287/mksc.1120.0714     Document Type: Article

References (42)

1. Akerlof GA (1991) Procrastination and obedience. Amer. Econom. Rev. 81(2):1-19.
2. Amaldoss W, Jain S (2005) Pricing of conspicuous goods: A competitive analysis of social effects. J. Marketing Res. 42(1):30-42.
3. Basu AK, Lal R, Srinivasan V, Staelin R (1985) Salesforce compensation plans: An agency theoretic perspective. Marketing Sci. 4(4):267-291.
4. Benzion U, Rapoport A, Yagil J (1989) Discount rates inferred from decisions: An experimental study. Management Sci. 35(3):270-284.
5. Bernheim B, Rangel A (2005) Behavioral public economics: Welfare and policy analysis with non-standard decision makers. NBER Working Paper 11518, National Bureau of Economic Research, Cambridge, MA.
6. Carpenter G, Nakamoto K (1990) Competitive strategies for late entry into a market with a "dominant brand." Management Sci. 36(10):1268-1279.
7. Chapman G (1996) Temporal discounting and utility for health and money. J. Experiment. Psych.: Learning, Memory, Cognition 22(3):771-791.
8. Chung D, Steenburgh T, Sudhir K (2008) Do bonuses enhance sales productivity? A dynamic structural analysis of bonus-based compensation plans. Working paper, Yale School of Management, New Haven, CT.
9. Dai T, Jerath K (2011) Salesforce compensation with inventory considerations. Working paper, Carnegie Mellon University, Pittsburgh.
10. DellaVigna S, Malmendier U (2004) Contract design and selfcontrol: Theory and evidence. Quart. J. Econom. 129(2):353-402.
11. Fernández-Gaucherand E, Jain S, Lee HL, Rao AG, Rao MR (1995) Improving productivity by periodic performance evaluation: A Bayesian stochastic model. Management Sci. 41(10):1669-1678.
12. Frayne CA, Geringer JM (2000) Self-management training for improving job performance: A field experiment involving salespeople. J. Appl. Psych. 85(3):361-372.
13. Fudenberg D, Levine D (2006) A dual-self model of impulse control. Amer. Econom. Rev. 96(5):1449-1476.
14. Gilpatric S (2008) Present-biased preferences, self-awareness and shirking. J. Econom. Behav. Organ. 67(3-4):735-754.
15. Gruber J, Köszegi B (2001) Is addiction rational? Theory and evidence. Quart. J. Econom. 116(4):1261-1305.
16. Gul F, Pesendorfer W (2001) Temptation and self control. Econometrica 69(6):1403-1435.
17. Harris C, Laibson D (2002) Hyperbolic discounting and consumption. Dewatripont M, Hansen LP, Turnovsky S, eds. Advances in Economics and Econometrics: Theory and Applications, Eighth World Congress, Vol. 1 (Cambridge University Press, Cambridge, UK), 258-298.
18. Jain S (2009) Self-control and optimal goals: A theoretical analysis. Marketing Sci. 28(6):1027-1045.
19. Jain S (2012) Marketing of vice goods: A strategic analysis of the package size decision. Marketing Sci. 31(1):36-51.
20. Joseph K, Kalwani MU (1998) The role of bonus pay in salesforce compensation plans. Indust. Marketing Management 27(2):147-159.
21. Kirby KN (1997) Bidding on the future: Evidence against normative discounting of delayed rewards. J. Experiment. Psych.: General 126(1):54-70.
22. Laibson D (1997) Golden eggs and hyperbolic discounting. Quart. J. Econom. 112(2):443-477.
23. Lal R, Srinivasan V (1993) Compensation plans for single- and multi-product salesforces: An application of the Holmstrom-Milgrom model. Management Sci. 39(7):777-793.
24. Machado F, Sinha R (2007) Smoking cessation: A model of planned vs. actual behavior for time-inconsistent consumers. Marketing Sci. 26(6):834-850.
25. Misra S, Nair HS (2011) A structural model of sales-force compensation dynamics: Estimation and field implementation. Quant. Marketing Econom. 9(3):211-257.
26. O'Donoghue T, Rabin M (1999a) Doing it now or doing it later. Amer. Econom. Rev. 89(1):103-124.
27. O'Donoghue T, Rabin M (1999b) Incentives for procrastinators. Quart. J. Econom. 114(3):769-816.
28. O'Donoghue T, Rabin M (2000) Economics of immediate gratification. J. Behav. Decision Making 13(2):233-250.
29. O'Donoghue T, Rabin M (2001) Choice and procrastination. Quart. J. Econom. 116(1):121-160.
30. O'Donoghue T, Rabin M (2003) Self-awareness and self-control. Loewenstein G, Read D, Baumeister R, eds. Time and Decision: Economic Perspectives on Intertemporal Choice (Russell Sage Foundation, New York), 217-243.
31. Oyer P (1998) Fiscal year ends and nonlinear incentive contracts: The effect on business seasonality. Quart. J. Econom. 113(1):149-185.
32. Oyer P (2000) A theory of sales quotas with limited liability and rent sharing. J. Labor Econom. 18(3):405-426.
33. Raju JS, Srinivasan V (1996) Quota-based compensation plans for multiterritory heterogeneous salesforces. Management Sci. 42(10):1454-1462.
34. Rao RC (1990) Compensating heterogeneous salesforces: Some explicit solutions. Marketing Sci. 9(4):319-341.
35. Renn R, Allen D, Huning T (2011) Empirical examination of the individual-level personality-based theory of self-management failure. J. Organ. Behav. 32(1):25-43.
36. Steenburgh T (2008) Effort or timing: The effect of lump-sum bonuses. Quant. Marketing Econom. 6(3):235-256.
37. Syam N, Krishnamurthy P, Hess JD (2008) That's what I thought I wanted? Miswanting and regret for a standard good in a masscustomized world. Marketing Sci. 27(3):379-397.
38. Thaler RH (1981) Some empirical evidence on dynamic inconsistency. Econom. Lett. 8(3):201-207.
39. Thaler RH, Shefrin HM (1981) An economic theory of self-control. J. Political Econom. 89(2):392-406.
40. Villas-Boas JM (2009) Product variety and endogenous pricing with evaluation costs. Management Sci. 55(8):1338-1346.
41. Wernerfelt B (1995) A rational reconstruction of the compromise effect: Using market data to infer utilities. J. Consumer Res. 21(4):627-633.
42. Wu Y, Ramachandran K, Krishnan V (2009) Managing projects with present-biased agents. Working paper, National University of Singapore, Singapore.