Strategic delegation in an experimental mixed duopoly

B-Tier
Journal: Journal of Economic Behavior and Organization
Year: 2013
Volume: 87
Issue: C
Pages: 91-100

Score contribution per author:

0.670 = (α=2.01 / 3 authors) × 1.0x B-tier

α: calibrated so average coauthorship-adjusted count equals average raw count

Abstract

We provide the first experimental test of the consequences of delegation in a mixed duopoly. Such delegation allows a profit maximizing private owner and a welfare maximizing public owner to weight sales in managerial contracts. Theory predicts that such contracts improve welfare. Our evidence indicates that both public and private subject owners do provide a weight on sales consistent with the subgame perfect equilibrium. Critically, however, this emerges in the experiment only when playing with a robot manager and when playing with a human subject manager after the experience of playing with a robot manager.

Technical Details

RePEc Handle
repec:eee:jeborg:v:87:y:2013:i:c:p:91-100
Journal Field
Theory
Author Count
3
Added to Database
2026-01-29