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  • 1 Corvinus University of Budapest MTA-BCE “Lendület” Strategic Interactions Research Group Budapest Hungary
  • 2 Corvinus University of Budapest Budapest Hungary
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The relationship of managerial bonuses and profit maximization is interesting both from an economic and a managerial viewpoint. Our contribution to this literature is showing that progressive managerial bonuses can increase profits in a spatial Bertrand competition, and furthermore they can help collusion.

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