This paper studies a simultaneous-move infinite-horizon delegation game in which the principal of a durable goods monopoly entrusts pricing decisions to a manager who enjoys consuming her monetary rewards but dislikes production effort. The delegation contract allows for continual interference...

This paper studies a simultaneous-move infinite-horizon delegation game in which the principal of a durable goods monopoly entrusts pricing decisions to a manager who enjoys consuming her monetary rewards but dislikes production effort. The delegation contract allows for continual interference...

This paper studies the commitment value of delegation in a model of dynamic competition. We argue that separating ownership and control delivers an instantaneous first-mover advantage. Thus, delegation would enable an oligopolistic firm to increase its equilibrium profit relative to direct...