Please use this identifier to cite or link to this item: 
Year of Publication: 
Series/Report no.: 
Bonn Econ Discussion Papers No. 17/2000
University of Bonn, Bonn Graduate School of Economics (BGSE), Bonn
This paper considers a two-stage game with two owners and two managers. On the first stage, the owners choose a linear combination of profits and sales as incentives for their managers. On the second stage, the two managers compete in a tournament against each other. In a symmetric equilibrium, both owners induce their managers to maximize profits. In asymmetric equilibria, however, one owner puts a positive weight on sales and the other a negative weight.
Document Type: 
Working Paper

Files in This Item:

Items in EconStor are protected by copyright, with all rights reserved, unless otherwise indicated.