Efficiency of bilateral delegation in a mixed Cournot duopoly
نویسندگان
چکیده
We consider a bilateral delegation mixed duopoly with quantity setting, where the objective function of public managers is based on strategic manipulation Generalized Welfare Function. show that such manipulation, coupled by private firm, enables government to enforce an efficient outcome at equilibrium. When manipulation/delegation choices and their sequence are endogenized, supported equilibrium, government, as first mover, setting weights Function most level consistent firm retaining manager. This ensures maximum welfare, compared all other organizational structures.
منابع مشابه
Nonlinear dynamics in a Cournot duopoly with relative profit delegation
The present study analyses the dynamics of a nonlinear Cournot duopoly with managerial delegation and bounded rational players. Problems concerning strategic delegation (based on relative performance evaluations) have recently received in depth attention in both the theoretical and empirical industrial economics literatures. In this paper, we take a dynamic view of this problem and assume that ...
متن کاملStrategic Delegation in an Experimental Mixed Duopoly
We provide the first test of the consequences of delegation in a mixed duopoly. Such delegation allows a profit maximizing private owner and a welfare maximizing public owner to give a separate weight to sales in managerial contracts. Theory predicts that such contracts improve welfare. Our experimental evidence indicates that both public and private owners do provide a weight on sales consiste...
متن کاملIncentive Contracts in a Cournot Duopoly
We discuss how owners can use incentive contracts to guide a manager in a duopoly. We show how owners can use the terms of the contract as a strategic lever and that asymmetric information increases the advantage to the firm with the lower marginal cost. The need for a contract depends on the source of asymmetric information and, using this insight, we show why it is important to distinguish th...
متن کاملAnalytic Solutions of Nonlinear Cournot Duopoly Game
The main aim of this study is to construct an explicit form of an analytic solution of a multidimensional difference equation. To this end, we present a nonlinear Cournot duopoly model with unimodal reaction functions, show that its dynamical system is double logistic when the production externalities involved get stronger, and then give a constructive proof of the existence of an analytic solu...
متن کاملUniqueness of Nash equilibria in a quantum Cournot duopoly game
A quantum Cournot game whose classical form game has multiple Nash equilibria is examined. Although the classical equilibria fail to be Pareto optimal, the quantum equilibrium exhibits the following two properties: (i) if the measurement of entanglement between strategic variables chosen by the competing firms is sufficiently large, the multiplicity of equilibria vanishes, and (ii) the more str...
متن کاملذخیره در منابع من
با ذخیره ی این منبع در منابع من، دسترسی به آن را برای استفاده های بعدی آسان تر کنید
ژورنال
عنوان ژورنال: Metroeconomica
سال: 2021
ISSN: ['1467-999X', '0026-1386']
DOI: https://doi.org/10.1111/meca.12330