Managerial optimism and investment choic
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Florian Englmaier
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Article
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2010
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John Wiley and Sons
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English
β 171 KB
## Abstract This paper analyzes whether it might be desirable for a firm to hire an overoptimistic manager to commit to a certain R&D strategy. I consider a Cournot model with an exβante R&D stage where firms can invest in cost reduction before product market competition takes place. I show that fi