Managerial Delegation in a Mixed Duopoly with a Foreign Competitor
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.
Volume (Year): 29 (2009)
Issue (Month): 1 ()
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