On strategic delegation equilibrium in duopoly market

The strategic delegation model under oligopoly competition, as a very important researching framework, gets wide application in recent years. This model studies market equilibrium under conditions of strategic delegation. However, it neglects one basic question, that is, whether and under what conditions can strategic delegation itself emerges as part of the equilibrium outcome. We initiate the notion of strategic delegation equilibrium, investigate all the possible equilibria in a duopoly model when the owners of the firms can choose strategic delegation, and present the conditions for strategic delegation equilibrium. Our study enriches and extends the strategic delegation model under oligopoly competition.