This article describes an actual controlled experiment to test the validity of the Davis-Farley sales compensation model. Results indicate that the implicit assumption of the model that salesmen seek to maximize income needs additional study.
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References
1.
DavisO. A. and FarleyJ. U. “Allocating Sales Force Effort with Commissions and Quotas,” Management Science, 18 (December 1971) Part II, 55–63.
2.
FarleyJ. U. “An Optimal Plan for Salesmen's Compensation,” Journal of Marketing Research, 1 (May 1964), 39–43.
