Managerial delegation reshapes firm locations and products in competitive industries.
This paper looks at how companies decide where to set up shop and what products to offer in a competitive market. By using a special model, the researchers found that when managers delegate decision-making power, it affects how close or different companies are from each other. When companies take turns making decisions, they end up closer together, but when they set prices, they move farther apart. The study also looks at how these decisions impact overall social welfare.