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Managerial Delegation in a Mixed Duopoly with a Foreign Competitor

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  • Jorge Fernández-Ruiz

    ()
    (El Colegio de México)

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    Abstract

    We examine firms' decisions to hire managers in a duopoly where a public firm competes with a foreign private firm. In contrast with the case in which the public firm competes with a domestic private firm -where only the private firm decides to hire a manager- we find that both firms hire managers. This leads to a social welfare higher than the one obtained when neither firm hires a manager.

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    File URL: http://www.accessecon.com/Pubs/EB/2009/Volume29/EB-09-V29-I1-P8.pdf
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    Bibliographic Info

    Article provided by AccessEcon in its journal Economics Bulletin.

    Volume (Year): 29 (2009)
    Issue (Month): 1 ()
    Pages: 90-99

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    Handle: RePEc:ebl:ecbull:eb-08l10047

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    Related research

    Keywords: Mixed oligopoly;

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    1. Fershtman, Chaim & Judd, Kenneth L, 1987. "Equilibrium Incentives in Oligopoly," American Economic Review, American Economic Association, vol. 77(5), pages 927-40, December.
    2. White, Mark D., 2001. "Managerial incentives and the decision to hire managers in markets with public and private firms," European Journal of Political Economy, Elsevier, vol. 17(4), pages 877-896, November.
    3. Barros, Fatima, 1995. "Incentive schemes as strategic variables: An application to a mixed duopoly," International Journal of Industrial Organization, Elsevier, vol. 13(3), pages 373-386, September.
    4. Yuanzhu Lu, 2006. "Endogenous Timing in a Mixed Oligopoly with Foreign Competitors: the Linear Demand Case," Journal of Economics, Springer, vol. 88(1), pages 49-68, June.
    5. repec:ebl:ecbull:v:12:y:2007:i:2:p:1-7 is not listed on IDEAS
    6. repec:ebl:ecbull:v:12:y:2007:i:27:p:1-7 is not listed on IDEAS
    7. Kenneth Fjell & Debashis Pal, 1996. "A Mixed Oligopoly in the Presence of Foreign Private Firms," Canadian Journal of Economics, Canadian Economics Association, vol. 29(3), pages 737-43, August.
    8. Toshihiro Matsumura, 2003. "Stackelberg Mixed Duopoly with a Foreign Competitor," Bulletin of Economic Research, Wiley Blackwell, vol. 55(3), pages 275-287, 07.
    9. Fjell, Kenneth & Heywood, John S, 2002. "Public Stackelberg Leadership in a Mixed Oligopoly with Foreign Firms," Australian Economic Papers, Wiley Blackwell, vol. 41(3), pages 267-81, September.
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    Cited by:
    1. Kazuhiro Ohnishi, 2011. "A Quantity-Setting Mixed Duopoly with Inventory Investment as a Coordination Device," Annals of Economics and Finance, Society for AEF, vol. 12(1), pages 109-119, May.

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