The role of commitments in noncooperative games is well acknowledged and documented. One way to achieve commitments is by letting delegates represent the players of a game. In this paper, the authors study a delegation game in which the players can use agents strategically to play on their...

The authors examine the incentives which competing principals give their agents, focusing on two oligopoly models where owners write incentive contracts with the ir managers. Under Cournot quantity competition, each manager's margi nal payment for production will exceed the firm's marginal...