Efficiency of bilateral delegation in a mixed Cournot duopoly
Alessandra Chirco and
Metroeconomica, 2021, vol. 72, issue 3, 493-508
We consider a bilateral delegation mixed duopoly with quantity setting, where the objective function of the public managers is based on strategic manipulation of a Generalized Welfare Function. We show that such manipulation, coupled with strategic delegation by the private firm, enables the government to enforce an efficient outcome at equilibrium. When the manipulation/delegation choices and their sequence are endogenized, public manipulation and private delegation are supported at equilibrium, with the government, as first mover, setting the weights of the Generalized Welfare Function at the most efficient level consistent with private firm retaining a manager. This ensures maximum welfare, as compared with all other organizational structures.
References: View references in EconPapers View complete reference list from CitEc
Citations: Track citations by RSS feed
Downloads: (external link)
This item may be available elsewhere in EconPapers: Search for items with the same title.
Export reference: BibTeX
RIS (EndNote, ProCite, RefMan)
Persistent link: https://EconPapers.repec.org/RePEc:bla:metroe:v:72:y:2021:i:3:p:493-508
Ordering information: This journal article can be ordered from
http://www.blackwell ... bs.asp?ref=0026-1386
Access Statistics for this article
Metroeconomica is currently edited by Heinz D. Kurz and Neri Salvadori
More articles in Metroeconomica from Wiley Blackwell
Bibliographic data for series maintained by Wiley Content Delivery ().