Optimal Salesmen's Compensation Plans: A Multiperiod Approach |
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Authors: | Rene Y Darmon |
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Institution: | 1.Faculty of Management, McGill University,Montreal |
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Abstract: | Conditions to induce an income maximizing salesman to allocate his time among product lines so as to maximize the firm's long-run profits are derived. These conditions highlight the need to take explicitly into account the carryover effects of salesmen's activities in determining the relative importance of the commission rates to be paid for the various product lines. |
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