Stackelberg equilibrium in oligopoly: An explanation based on managerial incentives

This paper shows that in a model of managerial delegation in a duopoly, if an ownerʹs decision to hire a manager is modeled explicitly, then the subgame perfect equilibrium may coincide with the Stackelberg solution. Interestingly, this can happen even when the cost of hiring a manager is the same for the owner of each firm.