On Price Competition with Market Share Delegation Contracts
Version of Record online: 14 NOV 2012
Copyright © 2012 John Wiley & Sons, Ltd.
Managerial and Decision Economics
Volume 34, Issue 1, pages 40–43, January 2013
How to Cite
Kopel, M. and Lambertini, L. (2013), On Price Competition with Market Share Delegation Contracts. Manage. Decis. Econ., 34: 40–43. doi: 10.1002/mde.2572
- Issue online: 12 DEC 2012
- Version of Record online: 14 NOV 2012
We identify a mistake in the specification of the demand system used in the strategic delegation model based on market shares by Jansen, van Lier and van Witteloostuijn, whereby the price remains above marginal cost when goods are homogeneous. After amending this aspect, we perform a profit comparison with the alternative delegation scheme à la Fershtman and Judd (1987). Copyright © 2012 John Wiley & Sons, Ltd.