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has been cited by the following article:

• TITLE: Endogenous Choice of Managerial Incentives in a Mixed Duopoly with a Foreign Private Firm

  AUTHORS: Kadohognon Sylvain Ouattara

  KEYWORDS: Public Firm, Foreign Private Firm, Strategic Delegation, Mixed Duopoly, Cournot Model

  JOURNAL NAME: Theoretical Economics Letters, Vol.6 No.2, April 27, 2016

  ABSTRACT: This paper studies the endogenous choice of managerial incentives in a mixed duopoly where a public firm competes with a foreign private firm. The foreign firm is partly owned by domestic investors and the firm’s owners have the option to hire a manager. We focus on a new incentive scheme of public firm’s managers that is a linear combination of social welfare and sales revenue. In equilibrium we find that when the weight attached to the foreign firm’s profits in social welfare is high enough, only the public firm hires a manager. This is in contrast with the classical sales delegation contract used in existing literature.