What is it about?
The performance of a sales organization is positively influenced by ethical behavior of sales people. To understand this relationship, this research applies game theory in the areas of salesforce control and compensation system. Research considers multiple equilibria in the game to identify optimal payoff and finds that a sales organization is better off with outcome control when sales people behave honestly as it has the highest payoff among all other possibilities. The propensity for sales people to make unethical choices can be reduced by designing an appropriate salesforce control system and a relevant compensation plan.
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This page is a summary of: Salesforce Control and Compensation System, Compensation & Benefits Review, July 2015, SAGE Publications,
DOI: 10.1177/0886368716657617.
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