Paper #1929

Título:

A theory of front-line management

Autores:

Daniel Bird y Alexander Frug

Fecha:

Noviembre 2025

Resumen:

Mid- and low-level managers play a significant role within the organizational hierarchy, far beyond monitoring. It is often their responsibility to respond to opportunities and threats within their units by adjusting their subordinates’ assignments. Most such managers, however, lack the authority to adapt their subordinates’ wages. In- stead, they rely on other, more restrictive incentive schemes. We study the interaction between a front-line manager and worker, and characterize the “managerial style” as a function of the players’ relative patience and information.

Palabras clave:

front-line management , perishable incentives , asymmetric discounting

Códigos JEL:

D21, D82, D86

Área de investigación:

Microeconomía

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