Dealing with managerial incentive in an oligopolistic competition market, simultaneous strategy model and sequential
strategy model are considered. We show that, the leader profit would not be affected by changing the number of the follower
firms when there is only one leader; when the number of firms between leader and follower become more equally distributed, it
will result in lower industry profit, higher consumer surplus and higher social welfare. Furthermore, if there are many managerial
firms already delegating in advance, the rest of the firms will choose to be delegation-follower firms rather than remain
entrepreneurial ones.