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- W2187511258 abstract "This paper analyses optimal contracting in an industry with uncertain market demand and quantity competition. A manager of a firm can incur an effort cost γ to learn about the demand and then makes a production decision. In this double task agency setting with contractual externality, the following results are derived: (i) The lower the reservation wage-effort cost ratio w/γ, the more complex the optimal contract and the more rents the manager may receive. (ii) The more volatile the demand the more firms employ incentive contracts. (iii) Asymmetric contracts may arise in an industry equilibrium with ex ante identical firms." @default.
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- W2187511258 date "2008-01-01" @default.
- W2187511258 modified "2023-09-26" @default.
- W2187511258 title "Optimal Contracting in Oligopolistic Industries" @default.
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