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Dynamic Bertrand competition with intertemporal demand
Weibull, Jörgen; Dutta, Prajit; Matros, Alexander - Economics Institute for Research (SIR), … - 2002
In the text-book model of dynamic Bertrand competition, competing firms meet the same demand function every period …
Persistent link: https://www.econbiz.de/10005649163
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Price-Wars in Finite Sequential Move Price Competition: The Role of Discounting
Wallner, Klaus - Economics Institute for Research (SIR), … - 2000
This paper characterizes the unique Markov equilibrium in the sequential move, finite horizon pricing duopoly with discounting. Simple, short cycles repeat until the last two periods. For discount factors above 0.75488, there are three-period reaction function cycles and below 0.75488,...
Persistent link: https://www.econbiz.de/10005649351
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Sequential Moves and Tacit Collusion: Reaction-Function Cycles in a Finite Pricing Duopoly
Wallner, Klaus - Economics Institute for Research (SIR), … - 1997
-Markovian strategies are required for persistent profits in dynamic price-competition games. …
Persistent link: https://www.econbiz.de/10005651507
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Risk-Averse Firms in Oligopoly
Asplund, Marcus - Economics Institute for Research (SIR), … - 1995
Does risk aversion lead to softer or fiercer competition? To give a complete answer, I provide a framework that can … accommodate a wide range of alternative assumptions regarding the nature of competition and types of uncertainty. I show how more … risk aversion will influence a firm's best response strategies, and that competition is unambiguously softer only in case …
Persistent link: https://www.econbiz.de/10005649373
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Risk Aversion, Prospect Theory, and Strategic Risk in Law Enforcement: Evidence From an Antitrust Experiment
Bigoni, Maria; Le Coq, Chloé; Fridolfsson, Sven-Olof; … - Economics Institute for Research (SIR), … - 2008
In this paper we investigate the effects of risk preferences and attitudes towards risk on optimal antitrust enforcement policies. First, we observe that risk aversion is negatively correlated with playersÂ’ proclivity to form a cartel, and that increasing the level of fines while reducing...
Persistent link: https://www.econbiz.de/10005651522
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Prices, Margins and Liquidity Constraints: Swedish Newspapers 1990-1996
Asplund, Marcus; Eriksson, Rickard; Strand, Niklas - Economics Institute for Research (SIR), … - 2001
For Swedish newspaper firms, a market with high switching costs, the subscription market, and a market with low switching costs, the advertising market, are of approximately equal importance. When Sweden enters a deep recession, we find that liquidity constraints influence the pricing decision...
Persistent link: https://www.econbiz.de/10005423828
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Capital budgeting in a situation with variable utilisation of capacity - an example from the pulp industry
Andersson, Henrik - Economics Institute for Research (SIR), … - 1999
It is well known that the profitability within the process industry is heavily dependent upon the degree of utilisation of the plants. Utilisation, in turn, is dependent upon the often very volatile market conditions for the commodity produced. <p> This paper examines the implications for capital...</p>
Persistent link: https://www.econbiz.de/10005802425
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A Note on Contingent Claims Pricing with Non-Traded Assets
Ericsson, Jan; Reneby, Joel - Economics Institute for Research (SIR), … - 1999
One of the main objections to applying contingent claims analysis outside the area of derivatives pricing, such as to the pricing of corporate (or sovereign) debt, has been that it is not possible to trade in the relevant state variable, e.g. the assets of a firm. Consequently, replicating...
Persistent link: https://www.econbiz.de/10005423856
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Two monies, two markets? Variability and the option to segment
Friberg, Richard - Economics Institute for Research (SIR), … - 2000
This paper examines the decision to create barriers to arbitrage for a firm selling on two national markets. Sunk costs of market segmentation imply that the option to segment markets is more valuable the greater the variability of purchasing power between markets. One result is that a monetary...
Persistent link: https://www.econbiz.de/10005649205
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Folk Theorems for Present-Biased Players
Bernergård, Axel - Economics Institute for Research (SIR), … - 2011
The folk theorems for infinitely repeated games with discounting presume that the discount rate between two successive periods is constant. Following the literature on quasi-exponential or hyperbolic discounting, I model the repeated interaction between two or more decision makers in a way that...
Persistent link: https://www.econbiz.de/10009146906