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This paper provides a simple reduced-form framework for analyzing merger decisions in the presence of asymmetric information about firm types, building on Shapiro's (1986) oligopoly model with asymmetric information about marginal costs. We employ this framework to examine what types of firms...
Persistent link: https://www.econbiz.de/10012723444
This study investigates social welfare and privatization depending on the government's preference for tax revenues and the timing of wage setting in either a unionized-mixed or a unionized-privatized duopolistic market. We show that bargaining over wages is always sequential regardless of who...
Persistent link: https://www.econbiz.de/10005103417
By introducing the government's preference for tax revenues into unionized mixed duopolies, this paper investigates how the preference can change the government's choice of tax regimes between ad valorem and specific taxes. Main results are as follows. Given that one of the tax regimes is...
Persistent link: https://www.econbiz.de/10011109745
compete in Cournot with one another. Each firm faces uncertainty in the input cost when making production decision, and has …
Persistent link: https://www.econbiz.de/10010884971
In this paper the dynamical effects of public environmental policies are investigated in a Cournot duopoly with …
Persistent link: https://www.econbiz.de/10010932985
’ volume and profit, on the other side it is effective in keeping or restoring the stability of the Cournot-Nash equilibrium in …
Persistent link: https://www.econbiz.de/10010933008
precommitment and Bertrand competition yield Cournot outcomes not only in the case of private firms but also when a public firm is …
Persistent link: https://www.econbiz.de/10011019315
This paper demonstrates that the standard conclusions regarding the comparison of Cournot and Bertrand competition are … Cournot competition yields higher output, lower wholesale prices, lower final prices, higher consumers' surplus, and higher …
Persistent link: https://www.econbiz.de/10010956742
The prediction of asymmetric equilibria with Stackelberg outcomes is clearly the most frequent result in the endogenous timing literature. Several experiments have tried to validate this prediction empirically, but failed to find support for it. By contrast, the experiments find that...
Persistent link: https://www.econbiz.de/10005260191
This paper extends the Cournot and Bertrand models of strategic interaction between firms by assuming that managers are … paper finds that if firms with reciprocal managers compete à la Cournot, then they may be able to sustain “collusive … reciprocity equilibrium. If there is Cournot competition between firms and their managers are averse to advantageous …
Persistent link: https://www.econbiz.de/10005260344