Should you allow your agent to become your competitor? on non-compete agreements in employment contracts

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Should you allow your agent to become your co ...
Matthias Kräkel, Matthias Kräk ...
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Last edited by MARC Bot
December 17, 2020 | History

Should you allow your agent to become your competitor? on non-compete agreements in employment contracts

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"We discuss a principal-agent model in which the principal has the opportunity to include a non-compete agreement in the employment contract. We show that not imposing such an agreement can be beneficial for the principal as the possibility to leave the firm generates implicit incentives for the agent. The principal prefers to impose such a clause if and only if the value created is sufficiently small relative to the agent's outside option. If the principal can use an option contract for retaining the agent, she will never prefer a strict non-compete agreement"--Forschungsinstitut zur Zukunft der Arbeit web site.

Publish Date
Publisher
IZA
Language
English

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Book Details


Edition Notes

Title from PDF file as viewed on 4/3/2006.

Includes bibliographical references.

Also available in print.

System requirements: Adobe Acrobat Reader.

Mode of access: World Wide Web.

Published in
Bonn, Germany
Series
Discussion paper -- no. 2054, Discussion paper (Forschungsinstitut zur Zukunft der Arbeit : Online) -- no. 2054

Classifications

Library of Congress
HD5701

The Physical Object

Format
[electronic resource] /

ID Numbers

Open Library
OL31758891M
LCCN
2006615655

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