Economics, Econometrics and Finance
8 years ago

Delegation boosts profits in oligopolies by manipulating managerial incentives.

Managerial and Decision Economics
Delegation and Incentives under Evolutionarily Stable Conjectures
Henrik Vetter

Paper Summary

Related papers

Economics, Econometrics and Finance
8 years ago

Delegation contracts prevent collusion, ensuring fair competition in business.

Market Dynamics
Monetary Models
Mechanism Design
3 views
Economics, Econometrics and Finance
4 years ago

Firms' strategic choices could disrupt markets, impact consumers

Market Dynamics
Economic Analysis
Two-Sided Markets
4 views
Economics, Econometrics and Finance
7 years ago

Monopolistic Firms Exploit Consumers, Stifle Competition in Oligopolistic Markets

Monetary Models
Economic Institutions
Economic Behavior
3 views

Delegating decision-making power and adjusting incentives can increase profits in a competitive market. By studying how managers are paid, researchers found that giving managers performance-based pay can lead to less competition among firms, benefiting the owners. This means that in a situation where firms are similar and competing, delegating authority to managers can actually help increase profits.