On price competition with market share delegation contracts
AbstractWe identify a mistake in the specification of the demand system used in the strategic delegation model based on market shares by Jansen et al. (2007), whereby the price remains above marginal cost when goods are homogeneous. After amending this aspect, we perform a profit comparison with the alternative delegation scheme à la Fershtman and Judd (1987).
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Bibliographic InfoPaper provided by Dipartimento Scienze Economiche, Universita' di Bologna in its series Working Papers with number wp806.
Date of creation: Jan 2012
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Other versions of this item:
- Michael Kopel & Luca Lambertini, 2013. "On Price Competition with Market Share Delegation Contracts," Managerial and Decision Economics, John Wiley & Sons, Ltd., vol. 34(1), pages 40-43, 01.
- L13 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Oligopoly and Other Imperfect Markets
This paper has been announced in the following NEP Reports:
- NEP-ALL-2012-02-01 (All new papers)
- NEP-BEC-2012-02-01 (Business Economics)
- NEP-COM-2012-02-01 (Industrial Competition)
- NEP-IND-2012-02-01 (Industrial Organization)
- NEP-MIC-2012-02-01 (Microeconomics)
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Lambertini, Luca & Trombetta, Marco, 2002. "Delegation and firms' ability to collude," Journal of Economic Behavior & Organization, Elsevier, Elsevier, vol. 47(4), pages 359-373, April.
- Constantine Manasakis & Evangelos Mitrokostas & Emmanuel Petrakis, 2009.
"Endogenous managerial incentive contracts in a differentiated duopoly, with and without commitment,"
Working Papers, University of Crete, Department of Economics
0905, University of Crete, Department of Economics.
- Constantine Manasakis & Evangelos Mitrokostas & Emmanuel Petrakis, 2010. "Endogenous managerial incentive contracts in a differentiated duopoly, with and without commitment," Managerial and Decision Economics, John Wiley & Sons, Ltd., vol. 31(8), pages 531-543, December.
- Miller, Nolan H & Pazgal, Amit I, 2001. "The Equivalence of Price and Quantity Competition with Delegation," RAND Journal of Economics, The RAND Corporation, vol. 32(2), pages 284-301, Summer.
- Berr, Fabian, 2011. "Stackelberg equilibria in managerial delegation games," European Journal of Operational Research, Elsevier, Elsevier, vol. 212(2), pages 251-262, July.
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