Strategic delegation under price competition and network effects

C-Tier
Journal: Economics Letters
Year: 2012
Volume: 117
Issue: 2
Pages: 487-489

Score contribution per author:

1.005 = (α=2.01 / 1 authors) × 0.5x C-tier

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

Abstract

Fershtman and Judd (1987) and Sklivas (1987) have shown that strategic delegation under price competition makes firm owners choose incentive contracts that induce managers to be soft in order to reduce competitive intensity. We show in a worked-out example that under sufficiently strong network effects this result is reversed, i.e. the mode of strategic delegation in general depends on more variables apart from whether managers’ strategies are complements or substitutes.

Technical Details

RePEc Handle
repec:eee:ecolet:v:117:y:2012:i:2:p:487-489
Journal Field
General
Author Count
1
Added to Database
2026-02-02