Performance/reward functions that feature upper and lower limits often encourage gamesmanship on the part of managers.

Name: Performance/reward functions that feature upper and lower limits often encourage gamesmanship on the part of managers.
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Question

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When performance/reward functions have upper and lower limits, managers might manipulate results or focus on short-term gains to meet these thresholds, rather than aiming for genuine long-term value creation.

Performance/reward Functions That Feature Upper and Lower Limits Often Encourage