BÁRCENA-RUIZ, JUAN CARLOS; OLAIZOLA, NORMA - In: Australian Economic Papers 45 (2006) 2, pp. 141-157
This work analyses a managerial delegation model in which firms choose between two production technologies: a low marginal cost technology and a high marginal cost technology. For the former to be adopted more investment is needed than for the later. By giving managers of firms an incentive...