This paper considers a Cournot duopoly game with endogenous organization structures. There are two firms A and B who compete in the retail market, where A is more efficient than B. Prior to competition in the retail stage, firms simultaneously choose their organization structures which can be...

This paper proposes simple tax policies that can alleviate the distortive effects of royalties. We consider a Cournot duopoly under decreasing returns where one of the firms has a patented technology that it can license to its rival using combinations of royalties and fixed fees. Under optimal...

Patent licensing agreements among competing firms usually involve royalties which are often considered to be anticompetitive as they raise market prices. In this paper we propose simple tax policies than can alleviate the effect of royalties. Considering a Cournot duopoly where firms produce...

We consider a Cournot duopoly with strategic delegation, where quantities of firms are chosen by their managers. A firm can offer its manager one of the two incentive contracts: the profit incentive or the revenue incentive. We show that in this setting there are Nash equilibria in which an...

We consider a Cournot duopoly under general demand and cost functions, where an incumbent patentee has a cost reducing technology that it can license to its rival by using combinations of royalties and upfront fees (two-part tariffs). We show that for drastic technologies: (a) licensing occurs...

Vertical integration in an environment without foreclosure, or more generally without any mechanisms that restrict competition among firms, and subsidization of firms' production are two separate mechanisms that raise consumer welfare, and both have been proposed as antidotes to certain aspects...

The theory of strategic managerial delegation has recently been extended by incorporating bargaining over managerial contracts (van Witteloostuijn et.al 2007, etc). Assuming that bargaining involves only the incentive rates of managers, this line of research has shown that market outcomes...

This paper analyzes the core of cooperative games generated by asymmetric aggregative normal-form games, i.e., games where the payoff of each player depends on his strategy and the sum of the strategies of all players. We assume that each coalition calculates its worth presuming that the outside...

We revisit cooperative games with externalities, i.e. cooperative games where the payoff of a coalition depends on the partition of the entire set of players. We define the worth of a coalition assuming that its members have probabilistic beliefs over the coalitional behavior of the outsiders,...

Two well-known mechanisms for enhancing managers' accountability are yardstick competition and internal monitoring. Yardstick competition puts managers in direct competition when firms make decisions for re-appointment (Tirole, 2006). Monitoring is used by firms to detect managers' rent-seeking...