Organizational structure, strategic delegation and innovation in oligopolistic industries
Evangelos Mitrokostas () and
Emmanuel Petrakis
Economics of Innovation and New Technology, 2014, vol. 23, issue 1, 1-24
Abstract:
We endogenize firms' organizational structures in a homogenous goods duopoly where firms invest in cost-reducing R&D and compete in quantities, and examine their impact on R&D efforts and market performance. Each firm's owner can either delegate to a manager both market competition and R&D investment decisions (full delegation (FD) strategy) or delegate the market competition decision alone (partial delegation (PD) strategy). We show that when the initial marginal cost is relatively high, universal FD emerges in equilibrium. Otherwise, an asymmetric equilibrium with one owner choosing an FD strategy and the other a PD strategy arises. Finally, universal PD can arise in equilibrium only if the competition is in prices.
Date: 2014
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (7)
Downloads: (external link)
http://hdl.handle.net/10.1080/10438599.2012.746197 (text/html)
Access to full text is restricted to subscribers.
Related works:
Working Paper: Organizational structure, strategic delegation and innovation in oligopolistic industries (2011) 
This item may be available elsewhere in EconPapers: Search for items with the same title.
Export reference: BibTeX
RIS (EndNote, ProCite, RefMan)
HTML/Text
Persistent link: https://EconPapers.repec.org/RePEc:taf:ecinnt:v:23:y:2014:i:1:p:1-24
Ordering information: This journal article can be ordered from
http://www.tandfonline.com/pricing/journal/GEIN20
DOI: 10.1080/10438599.2012.746197
Access Statistics for this article
Economics of Innovation and New Technology is currently edited by Professor Cristiano Antonelli
More articles in Economics of Innovation and New Technology from Taylor & Francis Journals
Bibliographic data for series maintained by Chris Longhurst ().