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effects on product market competition. We test their model in a duopoly experiment under both, Bertrand and Cournot … competition. We find that leverage has strategic effects, but those effects are much weaker than predicted by theory. Specifically … predicted by theory. It appears that subjects recognize the strategic effects of their own debt. However, they do not (want to …
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best technologies, or only intermediate technologies. No other equilibria can exist. -- Cournot duopoly ; strategic …
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This paper analyzes a duopoly model with stochastic demand in which firms first choose their strategy variable and …
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This note considers a bargaining environment with two-sided asymmetric information and quasilinear preferences in which parties select bargaining mechanism after learning their valuations. I demonstrate that sometimes the buyer achieves a higher ex-ante payoff if the bargaining mechanism is...
Persistent link: https://www.econbiz.de/10010373494
This paper investigates the strategic value of the managerial incentive scheme in affecting firms' incentive in R&D investment and their product market activities. Firstly, we find that in Cournot-quantity competition, owners strategically assign a non-profit-maximization objective to their...
Persistent link: https://www.econbiz.de/10011436367