Managerial delegation in a dynamic renewable resource oligopoly

Luca Lambertini ()

Working Papers from Dipartimento Scienze Economiche, Universita' di Bologna

Abstract: I propose a differential oligopoly game of resource extraction under (quasi-static) open-loop and nonlinear feedback strategies, where firms are managerial and two alternative types of delegation contract are considered. Under open-loop information, delegation expands the residual steady state resource stock. Conversely, under nonlinear feedback information the outcome depends on the structure of managerial incentives. If sales are used, once again delegation favours resource preservation. On the contrary, if market shares are included in the delegation contract, this combines with an underlying voracity effect in shrinking the steady state volume of the resource.

JEL-codes: C73 L13 Q2 (search for similar items in EconPapers)
Date: 2015-01
New Economics Papers: this item is included in nep-com and nep-cse
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Related works:
Chapter: Managerial Delegation in a Dynamic Renewable Resource Oligopoly (2016)
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Persistent link: https://EconPapers.repec.org/RePEc:bol:bodewp:wp990

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