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Endogenous Timing in a Mixed Duopoly: The Managerial Delegation Case

Author

Listed:
  • Yasuhiko Nakamura

    () (Graduate School of Economics, Waseda University)

  • Tomohiro Inoue

    () (Graduate School of Economics, Waseda University)

Abstract

We introduce managerial delegation into Pal's (1998) model and examine the impact of the introduction of managerial delegation on endogenous timing in a mixed duopolistic model for differentiated goods. We show that a public firm and a private firm choose quantities sequentially in the equilibrium of our model. Thus, we find that the Pal''s (1998) results are robust against managerial delegation.

Suggested Citation

  • Yasuhiko Nakamura & Tomohiro Inoue, 2007. "Endogenous Timing in a Mixed Duopoly: The Managerial Delegation Case," Economics Bulletin, AccessEcon, vol. 12(27), pages 1-7.
  • Handle: RePEc:ebl:ecbull:eb-07l20010
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    References listed on IDEAS

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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 927-940, December.
    2. Toshihiro Matsumura, 2003. "Stackelberg Mixed Duopoly with a Foreign Competitor," Bulletin of Economic Research, Wiley Blackwell, vol. 55(3), pages 275-287, July.
    3. 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.
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    5. Matsumura, Toshihiro, 1998. "Partial privatization in mixed duopoly," Journal of Public Economics, Elsevier, vol. 70(3), pages 473-483, December.
    6. 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.
    7. 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.
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    Citations

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    Cited by:

    1. Yasuhiko Nakamura, 2019. "Combining the Endogenous Choice of the Timing of Setting the Levels of Strategic Contracts and Their Contents in a Managerial Mixed Duopoly," Journal of Industry, Competition and Trade, Springer, vol. 19(2), pages 235-261, June.
    2. Kadohognon Sylvain Ouattara, 2015. "Délégation stratégique dans un duopole mixte international," Economics Working Paper Archive (University of Rennes 1 & University of Caen) 201518, Center for Research in Economics and Management (CREM), University of Rennes 1, University of Caen and CNRS.
    3. Jorge Fernández-Ruiz, 2009. "Managerial Delegation in a Mixed Duopoly with a Foreign Competitor," Economics Bulletin, AccessEcon, vol. 29(1), pages 90-99.
    4. Yasuhiko Nakamura, 2020. "Endogenously choosing the timing of setting strategic contracts’ levels and content in a managerial mixed duopoly with welfare-based and sales delegation contracts," International Review of Economics, Springer;Happiness Economics and Interpersonal Relations (HEIRS), vol. 67(3), pages 363-402, September.
    5. Junichi Haraguchi & Toshihiro Matsumura, 2020. "Endogenous public and private leadership with diverging social and private marginal costs," Manchester School, University of Manchester, vol. 88(5), pages 699-730, September.
    6. Yoshihiro Tomaru & Yasuhiko Nakamura & Masayuki Saito, 2009. "Capacity Choice in a Mixed Duopoly with Managerial Delegation," Economics Bulletin, AccessEcon, vol. 29(3), pages 1904-1924.
    7. Rudra Sensarma & Bibhas Saha, 2008. "The Distributive Role of Managerial Incentives in a Mixed Duopoly," Economics Bulletin, AccessEcon, vol. 12(28), pages 1-10.
    8. Yasuhiko Nakamura & Tomohiro Inoue, 2009. "Endogenous timing in a mixed duopoly: price competition with managerial delegation," Managerial and Decision Economics, John Wiley & Sons, Ltd., vol. 30(5), pages 325-333.
    9. Yasuhiko Nakamura, 2019. "Endogenous Choice of the Timing of Setting Incentive Parameters and the Strategic Contracts in a Managerial Mixed Duopoly with a Welfare-Based Delegation Contract and a Sales Delegation Contract," Journal of Industry, Competition and Trade, Springer, vol. 19(4), pages 679-737, December.

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    More about this item

    Keywords

    Endogenous Timing;

    JEL classification:

    • L2 - Industrial Organization - - Firm Objectives, Organization, and Behavior
    • L3 - Industrial Organization - - Nonprofit Organizations and Public Enterprise

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