see attached

Economic Assignment
Student’s Name
Institutional Affiliation
Economic Assignment
Week 9
Motivating employees or agents to work in the best interest of the organization is important in management economics. Incentives act as a perfect way of rewarding performance. When properly applied, they have been shown to help improve performance by substantial margins (Wang and Lim, 2008). In the case highlighted, the incentives for school principals may be employed in a variety of ways. First, principals are given cash incentives when they meet the set performance standards of “excellent” or “recommended.” The money offered is strictly tied on exceptional performance to motivate principals to meet set performance standards.
Further, the incentive can be in the form of paid time off so that employees seek self-improvement through training which helps them become effective (Froeb et al., 2015). Moreover, the work environment of such principals can be optimized to ensure they have all the tools they need. Equipping their schools with modern state of the art learning material is one way of doing this feat. Week 10
The incentive conflict that was being controlled by these loyalty payments was exclusion. Intel was trying to exclude AMD, its competitor from the market by offering huge loyalty incentives to HP (Janis et al., 2016). In such an event, rivals to HP such as AMD in the chip market incur high costs to enter the chip market. Therefore, this is an illegal practice violating antitrust laws.

The advice Intel failed to follow was that of considering the effect of any action on competitors especially if a company has significant market power. Generally, this is to protect consumers by restricting practices that can lessen competition. Intel may have ignored that advice since they are dominant in the computer market and have a desire to rid the market of competition.
References
Wang, H., & Lim, S. S. (2008). Real options and real value: The role of employee incentives to make specific knowledge investments. Strategic Management Journal, 29(7), 701-721.
Froeb, L. M., McCann, B. T., Ward, M. R., & Shor, M. (2015). Managerial Economics. Cengage Learning.
Janis, M. D., Hovenkamp, H., Lemley, M. A., Leslie, C., & Carrier, M. A. (2016). IP and antitrust: an analysis of antitrust principles applied to intellectual property law. Wolters Kluwer Law & Business.