Progressive managerial bonuses in a spatial Bertrand duopoly
Barna Bakó and
András Kálecz-Simon ()
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András Kálecz-Simon: Corvinus University of Budapest, Budapest, Hungary
Society and Economy, 2013, vol. 35, issue 4, 531-538
Abstract:
The relationship of managerial bonuses and profit maximization is interesting both from an economic and a managerial viewpoint. Our contribution to this literature is showing that progressive managerial bonuses can increase profits in a spatial Bertrand competition, and furthermore they can help collusion.
Keywords: strategic delegation; managerial incentives (search for similar items in EconPapers)
JEL-codes: D21 L13 (search for similar items in EconPapers)
Date: 2013
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Persistent link: https://EconPapers.repec.org/RePEc:aka:soceco:v:35:y:2013:i:4:p:531-538
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