Delegating Pricing Decisions in Competitive Markets With Symmetric and Asymmetric Information
- Topics:
- Pricing and Margins,
- Pricing Strategy
- Tags:
- Competitive Market,
- Delegation,
- Institute For Operations Research,
- Marketing,
- Marketing Research,
- Pricing,
- Pricing Strategy
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Overview: This paper examines the issue of price delegation versus centralized pricing in the context of a competitive market. Consistent with the past theoretical literature on price delegation, the contracting framework of agency theory is used. The firm designs and offers an optimal contract that will motivate the salesperson to work at a level that maximizes the firm's profits.
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Format: PDF | Size: 116KB | Date: Sep 2005 | Pages: 8




