Managerial optimism and investment choice

Englmaier, Florian

doi:10.1002/mde.1498

Managerial optimism and investment choice

Publikationstyp:	Zeitschriftenartikel
URI (zitierfähiger Link):	http://nbn-resolving.de/urn:nbn:de:bsz:352-127078
Autor/innen:	Englmaier, Florian
Erscheinungsjahr:	2010
Erschienen in:	Managerial and Decision Economics ; 2010. - ISSN 0143-6570
DOI (zitierfähiger Link):	https://dx.doi.org/10.1002/mde.1498
Zusammenfassung:	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.
Fachgebiet (DDC):	330 Wirtschaft
Link zur Lizenz:	Nutzungsbedingungen

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ENGLMAIER, Florian, 2010. Managerial optimism and investment choice. In: Managerial and Decision Economics. ISSN 0143-6570. Available under: doi: 10.1002/mde.1498

@article{Englmaier2010Manag-12707, title={Managerial optimism and investment choice}, year={2010}, doi={10.1002/mde.1498}, issn={0143-6570}, journal={Managerial and Decision Economics}, author={Englmaier, Florian} }

Englmaier, Florian First publ. in: Managerial and Decision Economics 31 (2010), 4, pp. 303–310 2010 terms-of-use 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. Englmaier, Florian 2011-07-18T07:56:52Z 2011-07-18T07:56:52Z eng Managerial optimism and investment choice