In multi-division corporations where division heads are allocated an annual budget, explain why the use-it-or-lose-it use-it-or-lose-it phenomenon

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In multi-division corporations where division heads are allocated an annual budget, explain why the “use-it-or-lose-it” “use-it-or-lose-it” phenomenon occurs and is a reflection of a prisoner’s dilemma.

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Microeconomics Theory and Applications

ISBN: 978-1118758878

12th edition

Authors: Edgar K. Browning, Mark A. Zupan

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Question Posted: Nov 14, 2014 08:28 AM

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In multi-division corporations where division heads are allocated an annual budget, explain why the use-it-or-lose-it use-it-or-lose-it phenomenon

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Each division has an incentive to spend all of its allocate...View the full answer

Microeconomics Theory and Applications

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