September 16, 2025MathematicsOpen Access

Evaluating the Effectiveness of Standardized Sales Incentive Contracts Under Agent Heterogeneity

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Heterogeneity weakens the effectiveness of standardized sales incentive contracts, leading to potential inefficiency.
Game-theoretical models reveal significant correlations between salesperson diversity and incentive outcomes.
Proposed methods assist firms in evaluating the effectiveness of their incentive contracts while accounting for heterogeneity.
Optimizing sales incentive mechanisms requires addressing the balance between management precision and costs.

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Analysis shows that salesperson heterogeneity impacts incentive effectiveness in sales contracts, suggesting firms evaluate this relationship.

Wang et al. (2025) studied this question.

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Analysis shows that salesperson heterogeneity impacts incentive effectiveness in sales contracts, suggesting firms evaluate this relationship.