Abstract
We consider managerial delegation with two firms producing goods of different qualities. We show that both firms choose to delegate in equilibrium, but a prisoner dilemma is not inevitable in the case of Cournot competition. Indeed, when the quality asymmetry is sufficiently large, the profits of the high-quality firm are greater than in the case of no delegation.
Lingua originale | English |
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pagine (da-a) | 1476-1481 |
Numero di pagine | 6 |
Rivista | Managerial and Decision Economics |
Stato di pubblicazione | Pubblicato - 2022 |
Keywords
- managerial delegation