6. Utilize your knowledge of principle-agent theory and optimal compensation mechanism design as discussed in the course to explain each of the following phenomenon: (a) Why some compensation mechanisms seem to resemble tournament prizes more so than payment for the value of the marginal product of individual workers. (b) Why the salaries of "superstar" executives may have increased under globalization. (c) Why firms may occasionally promote by bringing in an external person rather than from within the internal ranks of the organisation even though that may create morale problems with the internal employees within the organisation (d) Why firms sometimes use up-or-out rules whereby incumbent employees are evaluated and either promoted or terminated (as opposed to simply paying lower wages to those who do not meet the promotion standards) (e) Why firms that raid other firms for employees may be subject to the "winner's curse."