We assume a multistage oligopoly wherein a given number of innovators compete by selling their substitutive technologies. Each innovator sequentially and independently chooses how many licenses to sell, and subsequently, all licensees compete à la Cournot in the product market.We show that, in...

We study managerial incentives in a model where managers take not only product market but also takeover decisions. We show that the optimal contract includes an incentive to increase the firm's sales, under both quantity and price competition. This result is in contrast to the previous...