An Optimal Commission Plan for Salesmen's Control Over Price

If marginal costs are constant, salesman who are paid a commission based on gross margin and who are given control over price will set prices so as to maximize simultaneously their own income and the company's profits. The result holds even if a salesman can only make a probabilistic estimate of sales.

• 저널Management Science · 21(8) · 937–943
• 토픽Supply Chain and Inventory Management · Management Information Systems
• DOI10.1287/mnsc.21.8.937
• 저자Charles B. Weinberg