|Englmaier, Florian (2010): Managerial Optimism and Investment Choice. In: Managerial and Decision Economics, Vol. 31, No. 4: pp. 303-310|
This paper analyzes whether it might be desirable for a firm to hire an overoptimistic manager to commit to a certain R&D strategy. I consider a Cournot model with an ex-ante R&D stage where firms can invest in cost reduction before product market competition takes place. I show that firms want to hire overoptimistic managers and argue that a manager's type may serve as a substitute for strategic delegation via contracts. © 2010 John Wiley & Sons,Ltd.
Economics > Chairs > Seminar for Organizational Economics
|Subjects:||300 Social sciences > 330 Economics|
|Deposited On:||01. Dec 2014 14:51|
|Last Modified:||01. Dec 2014 15:04|