In this experiment, we analyze strategic delegation in a Cournot duopoly. Owners can choose among two different … contracts which determine their managers' salaries. One contract simply gives managers incentives to maximize firm profits … only rarely chosen in the experimental markets. This behavior is rational given that managers do not play according to the …

We derive Bertrand and Cournot equilibria in a differentiated duopoly in which each firm hires a manager to undertake … Cournot game. Furthermore, Cournot and Bertrand models with overconfident managers in- duce low prices, massive productions …