In this paper we study the nature of incentive contracts and organizational modes in a game where the firms' owners endogenously determine the order of moves at the quantity-setting stage, can choose to delegate the production decision to a manager and write appropriate incentive contracts. It...

We introduce a mixed quantity-setting duopoly with a socially concerned firm and a profit-maximizing firm to derive a firms' optimal combination of the organization's type, the structure of managerial compensation and its manager's type. Both firms delegate the quantity choice to managers who...