๐”– Bobbio Scriptorium
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Delegation in contests

โœ Scribed by Kyung Hwan Baik; In-Gyu Kim

Book ID
114179358
Publisher
Elsevier Science
Year
1997
Tongue
English
Weight
924 KB
Volume
13
Category
Article
ISSN
0176-2680

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## Abstract Owners usually want their managers to maximize profits. As the literature on strategic delegation has shown it may be beneficial to owners to put a positive weight on sales in the optimal linear incentive scheme for managers to make them behave more aggressively in the market. This pape

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## Abstract Considering oligopolistic contests with R&D spillovers and strategic delegation three results can be obtained: (1) There exist multiple asymmetric equilibria where one owner highly favors sales as a basis for his manager's incentives which drives the other firm out of the market. (2) If