Incentive Mechanism Design Aiming at Deflated Performance Manipulation in Retail Firms: Based on the Ratchet Effect and the Reputation Effect

Figure 2

Numerical simulations in different levels of the target adaptation coefficient and the environmental volatility. (Note that other parameters are given by , , , , , and .)

(a) The case that the target adaptation coefficient is equal to 0.5 ()

(b) The case that the target adaptation coefficient is equal to 1 ()