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

References

• Albers S, Mantrala MK, Sridhar S (2010) Personal selling elasticities: A meta-analysis. J. Marketing Res. 47(5):840–853.Crossref, Google Scholar
• Arcidiacono P, Jones JB (2003) Finite mixture distributions, sequential likelihood, and the EM algorithm. Econometrica 71(3): 933–946.Crossref, Google Scholar
• Arcidiacono P, Miller RA (2011) Conditional choice probability estimation of dynamic discrete choice models with unobserved heterogeneity. Econometrica 79(6):1823–1867.Crossref, Google Scholar
• Assmus G, Farley JU, Lehmann DR (1984) How advertising affects sales: Meta-analysis of econometric results. J. Marketing Res. 21(1):65–74.Crossref, Google Scholar
• Bajari P, Benkard CL, Levin J (2007) Estimating dynamic models of imperfect competition. Econometrica 75(5):1331–1370.Crossref, Google Scholar
• Bangert-Drowns RL, Kulik JA, Kulik C-LC (1991) Effects of frequent classroom testing. J. Educational Res. 85(2):89–99.Crossref, Google Scholar
• Basu AK, Lal R, Srinivasan V, Staelin R (1985) Salesforce compensation plans: An agency theoretic perspective. Marketing Sci. 4(4):267–291.Link, Google Scholar
• Beauchamp A (2012) Regulation, imperfect competition, and the U.S. abortion market. Working paper, Boston College, Chestnut Hill, MA.Google Scholar
• Bijmolt THA, Van Heerde HJ, Pieters RGM (2005) New empirical generalizations on the determinants of price elasticity. J. Marketing Res. 42(2):141–156.Crossref, Google Scholar
• Chan TY, Li J, Pierce L (2014) Compensation and peer effects in competing sales teams. Management Sci. Forthcoming.Link, Google Scholar
• Chevalier J, Goolsbee A (2009) Are durable goods consumers forward-looking? Evidence from college textbooks. Quart. J. Econom. 124(4):1853–1884.Crossref, Google Scholar
• Copeland A, Monnet C (2009) The welfare effects of incentive schemes. Rev. Econom. Stud. 76(1):96–113.Crossref, Google Scholar
• Darmon R (1997) Selecting appropriate sales quota plan structures and quota-setting procedures. J. Personal Selling Sales Management 17(1):1–16.Google Scholar
• Dubé J-P, Hitsch G, Jindal P (2012) The joint identification of utility and discount functions from stated choice data: An application to durable goods adoption. Working paper, University of Chicago, Chicago.Crossref, Google Scholar
• Efron B (1979) Bootstrap methods: Another look at the jackknife. Ann. Statist. 7(1):1–26.Crossref, Google Scholar
• Ferrall C, Shearer B (1999) Incentives and transactions costs within the firm: Estimating an agency model using payroll records. Rev. Econom. Stud. 66(2):309–338.Crossref, Google Scholar
• Finger SR (2012) An empirical analysis of R&D competition in the chemicals industry: Incorporating unobserved heterogeneity into a dynanic game estimator. Working paper, University of South Carolina, Columbia.Google Scholar
• Frederick S, Loewenstein G, O'Donoghue T (2002) Time discounting and time preference: A critical review. J. Econom. Literature 40(2):351–401.Crossref, Google Scholar
• Heath C, Larrick RP, Wu G (1999) Goals as reference points. Cognitive Psych. 38(1):79–109.Crossref, Google Scholar
• Heide CP (1999) Dartnell's 30th Sales Force Compensation Survey, 30th ed. (Dartnell Corp, Durham, NC).Google Scholar
• Holmstrom B (1979) Moral hazard and observability. Bell J. Econom. 10(1):74–91.Crossref, Google Scholar
• Holmstrom B, Milgrom P (1987) Aggregation and linearity in the provision of intertemporal incentives. Econometrica 55(2): 303–328.Crossref, Google Scholar
• Hotz VJ, Miller RA (1993) Conditional choice probabilities and the estimation of dynamic models. Rev. Econom. Stud. 60(3): 497–529.Crossref, Google Scholar
• Jiang R, Palmatier RW (2009) Structural estimation of a moral hazard model: An application to business selling. Working paper, University of California, Davis, Davis.Google Scholar
• Joseph K, Kalwani M (1998) The role of bonus pay in sales force compensation plans. Indust. Marketing Management 27(2): 147–159.Crossref, Google Scholar
• Judd KL (1998) Numerical Methods in Economics (MIT Press, Cambridge, MA).Google Scholar
• Kim SK (1997) Limited liability and bonus contracts. J. Econom. Management Strategy 6(4):899–913.Crossref, Google Scholar
• Lal R, Srinivasan V (1993) Compensation plans for single- and multi-product sales forces: An application of the Holmstrom-Milgrom model. Management Sci. 39(7):777–793.Link, Google Scholar
• Magnac T, Thesmar D (2002) Identifying dynamic discrete choice models. Econometrica 70(2):801–816.Crossref, Google Scholar
• Mirrlees JA (1999) The theory of moral hazard and unobservable behaviour: Part I. Rev. Econom. Stud. 66(1):3–21. [Mimeo, Nuffield College, Oxford, UK, 1975.]Crossref, Google Scholar
• Misra S, Nair H (2011) A structural model of sales-force compensation dynamics: Estimation and field implementation. Quant. Marketing Econom. 9(3):211–257.Crossref, Google Scholar
• Oyer P (1998) Fiscal year ends and nonlinear incentive contracts: The effect on business seasonality. Quart. J. Econom. 113(1): 149–185.Crossref, Google Scholar
• Oyer P (2000) A theory of sales quotas with limited liability and rent sharing. J. Labor Econom. 18(3):405–426.Crossref, Google Scholar
• Paarsch HJ, Shearer B (2000) Piece rates, fixed wages, and incentive effects: Statistical evidence from payroll records. Internat. Econom. Rev. 41(1):59–92.Crossref, Google Scholar
• Park E-S (1995) Incentive contracting under limited liability. J. Econom. Management Strategy 4(3):477–490.Crossref, Google Scholar
• Raju JS, Srinivasan V (1996) Quota-based compensation plans for multi-territory heterogeneous salesforces. Management Sci. 42(10):1454–1462.Link, Google Scholar
• Rao RC (1990) Compensating heterogeneous sales-forces: Some explicit solutions. Marketing Sci. 9(4):319–341.Link, Google Scholar
• Rust J (1987) Optimal replacement of GMC bus engines: An empirical model of Harold Zurcher. Econometrica 55(5):999–1033.Crossref, Google Scholar
• Rust J (1994) Structural estimation of Markov decision processes. Engle RE, McFadden D, eds. Handbook of Econometrics, Vol. 4 (Elsevier-North Holland, Amsterdam), 3082–3139.Google Scholar
• Shen Q (2013) A dynamic model of entry and exit in a growing industry. Working paper, University of Pennsylvania, Philadelphia.Google Scholar
• Steenburgh T (2008) Effort or timing: The effect of lump-sum bonuses. Quant. Marketing Econom. 6(3):235–256.Crossref, Google Scholar
• Sudhir K (2001) Structural analysis of manufacturer pricing in the presence of strategic retailer. Marketing Sci. 20(3):244–264.Link, Google Scholar
• Training (2008) Quota-based compensation on the rise. (October 15) http://www.trainingmag.com/article/quota-based-compensation-rise.Google Scholar
• Yao S, Mela CF, Chiang J, Chen Y (2012) Determining consumers' discount rates with field studies. J. Marketing Res. 49(6): 822–841.Crossref, Google Scholar
• Zoltners AA, Sinha P, Lorimer SE (2008) Sales force effectiveness: A framework for researchers and practitioners. J. Personal Selling Sales Management 28(2):115–131.Crossref, Google Scholar