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This paper investigates the strategic value of the managerial incentive scheme in affecting firms' incentive in R&D investment and their product market activities. Firstly, we find that in Cournot-quantity competition, owners strategically assign a non-profit-maximization objective to their...
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contracts which determine their managers' salaries. One contract simply gives managers incentives to maximize firm profits … subgame perfect equilibrium prediction when asymmetric contracts are given. …
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-it-or-leave-it contracts to the retailers, with that of a bargaining game, in which the firms bilaterally negotiate contract terms via a … manufacturers depends on the contractual form. With simple contracts such as wholesale-price contracts, which generally do not allow … with the manufacturers possessing all bargaining power. In contrast, with sophisticated contracts such as two-part tariffs …
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