Managerial Incentive Design in an integrated Firm B=10000-0.5(Q-Q) (Qr=20000) With this scheme,however,managers would have an incentive to underestimate capacity. By claiming capacities below what they know to be true, they can more easily earn large bonuses even if they do not operate efficiently.B = 10000 - 0.5 (Qf - Q) (Qf =20000) With this scheme, however, managers would have an incentive to underestimate capacity. By claiming capacities below what they know to be true, they can more easily earn large bonuses even if they do not operate efficiently. Managerial Incentive Design in an integrated Firm