Delegation is a central feature of organizational design that theory suggests should be aligned with the intensity of incentives in performance pay schemes. We explore a specific form of delegation, namely price delegation, whereby firms allow sales people to offer a maximum discount from the...

Previous research, assuming linear pricing, has argued that telecommunications networks may use a high access charge as an instrument of collusion. I show that this conclusion is difficult to maintain when operators compete in nonlinear pricing: (i) As long as subscription demand is inelastic,...