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Intrafirm conflicts and interfirm competition

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  • Güth, Werner
  • Pull, Kerstin
  • Stadler, Manfred

Abstract

We study strategic interfirm competition allowing for internal conflicts in each seller firm. Intrafirm conflicts are captured by a multi-agent framework with principals implementing a revenue sharing scheme. For a given number of agents, interfirm competition leads to a higher revenue share for the agents, higher equilibrium effort levels and higher agent utility, but lower profits for the firms. The winners from antitrust policy are thus not only the consumers but also the agents employed by the competing firms.

Suggested Citation

  • Güth, Werner & Pull, Kerstin & Stadler, Manfred, 2011. "Intrafirm conflicts and interfirm competition," University of Tuebingen Working Papers in Economics and Finance 14, University of Tuebingen, Faculty of Economics and Social Sciences.
  • Handle: RePEc:zbw:tuewef:14
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    References listed on IDEAS

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    Cited by:

    1. Hildenbrand, Andreas & Duran, Mihael, 2013. "The role of managerial work in market performance: A monopoly model with team production," University of Tuebingen Working Papers in Economics and Finance 66, University of Tuebingen, Faculty of Economics and Social Sciences.
    2. Güth, Werner & Pull, Kerstin & Stadler, Manfred, 2014. "Delegation, worker compensation, and strategic competition," University of Tuebingen Working Papers in Economics and Finance 67, University of Tuebingen, Faculty of Economics and Social Sciences.
    3. Pull, Kerstin & Stadler, Manfred, 2015. "Contests vs. piece rates in product market competition," University of Tuebingen Working Papers in Economics and Finance 85, University of Tuebingen, Faculty of Economics and Social Sciences.
    4. 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.

    More about this item

    Keywords

    agency theory; strategic interfirm competition; revenue sharing;

    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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