Firms' secret pay deals impact consumer welfare
The article studies how companies in competitive markets share information about their employees' pay to make strategic decisions. In some cases, firms share this info if their products are different enough. The findings show that in a mixed Cournot-Bertrand market, one firm punishes its sales teams, while the other rewards them. When products are similar, firms might choose to keep this pay info private. Requiring firms to share this data could help consumers and society but could hurt the companies' profits.