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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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