This paper shows that it is profitable for a firm to hire an overoptimistic manager to commit to a certain investment strategy in an R&D tournament situation. In the unique symmetric equilibrium, all firms delegate to overoptimistic managers, where the optimal degree of overoptimism depends on...

This paper shows that it is profitable for a firm to hire an overoptimistic manager to commit to a certain investment strategy in an R&D tournament situation. In the unique symmetric equilibrium, all firms delegate to overoptimistic managers, where the optimal degree of overoptimism depends on...

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...

Nach der deutschen Einheit sollte in Ostdeutschland die Forschung nach dem Muster und mit der Leistungsfähigkeit der westdeutschen gestaltet werden. Obwohl der Institutionentransfer weit fortgeschritten ist, wurde damit bisher keine einheitliche deutsche Forschungslandschaft erreicht. Bei der...