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We analyze a Cournot duopoly market with differentiated goods and the separation between ownership and control. We … substitutability than it really has. This is so either because managers are biased and perceive the good in this way, or because firms …
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We show that Miller and Pazgal.s (2001) model of strategic delegation, in which managerial incentives are based upon relative performance, is affected by a non-existence problem which has impact on the price equilibrium. The undercutting incentives generating this result are indeed similar to...
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