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Delegation and Product Differentiation

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  • L. Lambertini

Abstract

The effects of the delegation of control to managers are investigated in a duopolistic market for differentiated goods. It appears that delegation is profitable to shareholders under Cournot competiton, provided that the rival firm maximizes profit.

Suggested Citation

  • L. Lambertini, 1993. "Delegation and Product Differentiation," Working Papers 173, Dipartimento Scienze Economiche, Universita' di Bologna.
    • Handle: RePEc:bol:bodewp:173
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