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Managerial Delegation and Conflicting Interest in Unionized Duopoly with Firm Heterogeneity

Author

Listed:
  • Shih-Shen Chen

    (School of Economics and Management, Fuzhou University of International Studies and Trade, Fuzhou 350202, China)

  • Po-Sheng Ko

    (Department of Public Finance and Taxation, National Kaohsiung University of Science and Technology, Kaohsiung 807618, Taiwan)

  • Chien-Shu Tsai

    (Center for Marine Affairs Studies, National Kaohsiung University of Science and Technology, Kaohsiung 807618, Taiwan
    Department of International Business, National Kaohsiung University of Science and Technology, Kaohsiung 807618, Taiwan)

  • Jen-Yao Lee

    (Department of International Business, National Kaohsiung University of Science and Technology, Kaohsiung 807618, Taiwan)

Abstract

This paper utilized a three-stage dynamic game to analyze the conflicts of interest between stakeholders caused by firm heterogeneity. We show that the higher the degree of heterogeneity, the higher the sales delegation incentive given. The firm’s heterogeneity scale will cause industry profit, union utility, consumer surplus and manager bonus conflicts of interest. Furthermore, the intensity of conflict is lower between the industry and the union than between the industry and consumer and between the industry and manager if the degree of heterogeneity is relatively small.

Suggested Citation

  • Shih-Shen Chen & Po-Sheng Ko & Chien-Shu Tsai & Jen-Yao Lee, 2022. "Managerial Delegation and Conflicting Interest in Unionized Duopoly with Firm Heterogeneity," Mathematics, MDPI, vol. 10(22), pages 1-8, November.
    • Handle: RePEc:gam:jmathe:v:10:y:2022:i:22:p:4201-:d:968327
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    References listed on IDEAS

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