Business, 13.10.2021 21:20, 2021ehays

4. Individual Problems 19-4 When China reformed state-owned enterprises, it tried a new approach to choosing managers: it put managerial jobs up for auction. The bids for the jobs consisted of promises of future profit streams that the managers would generate and then deliver to the state. In cases where the incumbent manager was the winning bidder, firm productivity tended to increase dramatically. When outside bidders won, there was little productivity improvement. Assume that incumbent managers and new managers had similar qualifications. True or False: This result stems from information asymmetry between incumbent managers and outside bidders. True False

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4. Individual Problems 19-4 When China reformed state-owned enterprises, it tried a new approach to...