In this article we consider two types of managers: first, those who have an ability to boost demand by consumers, and, secondly, those who are skilful in reducing costs. The decision of firms on which type of manager is to be hired is given by efficiency and strategic motives. If one type of manager has a greater ability than the other one, the efficiency motive dominates the strategic motive and, in equilibrium, both firms choose the same type of manager. On the contrary, when both types of managers have a similar ability, the strategic motive determines the choice of the type of manager made by firms.

Key words: managers, market structure, firm organization.
JEL classification: L22, M12.