Working Papers

Do Bonuses Enhance Sales Productivity? A Dynamic Structural Analysis of Bonus-based Compensation Plans

Doug Chung, Thomas Steenburgh, and K. Sudhir

Jan 1, 2009

Proposes a structural model of salespeople’s response to different compensation instruments at various earnings levels; uses individual-level data of salesforce performance during a three-year period at a Fortune 500 firm.

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