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Intra-firm Conflicts and Interfirm Competition

Author

Listed:
  • Werner Güth

    (Max Planck Institute of Economics, Strategic Interaction Group, Jena, Germany)

  • Kerstin Pull

    (University of Tübingen, Department of Economics and Business Administration)

  • Manfred Stadler

    (University of Tübingen, Department of Economics and Business Administration)

Abstract

We study interaction effects between intra-firm conflicts and interfirm competition on a duopolistic market with seller firms employing one or more agents and implementing tournament incentives. We show that inter-firm competition leads to higher incentive intensity, higher efforts and output levels but lower profits.

Suggested Citation

  • Werner Güth & Kerstin Pull & Manfred Stadler, 2009. "Intra-firm Conflicts and Interfirm Competition," Jena Economics Research Papers 2009-007, Friedrich-Schiller-University Jena.
    • Handle: RePEc:jrp:jrpwrp:2009-007
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    File URL: https://oweb.b67.uni-jena.de/Papers/jerp2009/wp_2009_007.pdf
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    Cited by:

    1. is not listed on IDEAS
    2. Max Albert & Andreas Hildenbrand, 2016. "Industrial Organization and Experimental Economics: How to Learn from Laboratory Experiments," Homo Oeconomicus: Journal of Behavioral and Institutional Economics, Springer, vol. 33(1), pages 135-156, August.
    3. Hildenbrand, Andreas & Duran, Mihael, 2013. "The role of managerial work in market performance: A monopoly model with team production," University of Tübingen Working Papers in Business and Economics 66, University of Tuebingen, Faculty of Economics and Social Sciences, School of Business and Economics.
    4. Güth, Werner & Pull, Kerstin & Stadler, Manfred, 2014. "Delegation, worker compensation, and strategic competition," University of Tübingen Working Papers in Business and Economics 67, University of Tuebingen, Faculty of Economics and Social Sciences, School of Business and Economics.
    5. Pull, Kerstin & Stadler, Manfred, 2015. "Contests vs. piece rates in product market competition," University of Tübingen Working Papers in Business and Economics 85, University of Tuebingen, Faculty of Economics and Social Sciences, School of Business and Economics.

    More about this item

    Keywords

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    JEL classification:

    • C72 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Noncooperative Games
    • L22 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Firm Organization and Market Structure
    • M52 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Personnel Economics - - - Compensation and Compensation Methods and Their Effects

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