Managerial bonus systems in a differentiated duopoly University of Antwerp
A differentiatedCournot duopoly is consideredwhere firm owners delegate the output decision to a manager, who is rewarded on the basis of his performance. If this performance is measured in terms of (i) pure profits, (ii) a combination of profits and sales, (iii) a combination of profits andmarket share or (iv) relative profits, the latter option strictly dominates the others if the products are perfect substitutes. Recently it was claimed that ...