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In this paper, we consider an oligopolistic market where every firm decides, simultaneously, its number of independant divisions and, subsequently, every division decides, simultaneously, the incentive scheme for its manager. In the last stage, we assume Cournot competition among all the managers.
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We have two main objectives in this work. Firstly, to link product market structure with the inventory policy followed by firms. Secondly, to study the effect of different financila contracts in firm's policy, in particular in its inventory policy. This will allow to define for a given economic...
Persistent link: https://www.econbiz.de/10005572178
We analyze an industry where a dominant buyer may foreclose its rivals (with whom competes a la Cournot in the final good market) from access to an efficient supplier of an intermediate good. We prove that the presence of asymmetric information between this dominant buyer and its supplier may...
Persistent link: https://www.econbiz.de/10005582715
The literature on school choice assumes that families can submit a preference list over all the schools they want to be assigned to. However, in many real-life instances families are only allowed to submit a list containing a limited number of schools. Subjects' incentives are drastically...
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