Similar Search Results

Stähler, Frank - Institut für Weltwirtschaft (IfW) - 1996

This paper discusses a simultaneous market entry game between two firms with different fixed costs. This case is a … enter the market. This presumption is wrong. Instead, the paper demonstrates a market entry paradox: the equilibrium … probability of entry is higher for the high-cost firm than the equilibrium probability of entry of the low-cost firm. …

Persistent link: https://www.econbiz.de/10009276409

Is a "firm" a firm? A Stackelberg experiment

Hildenbrand, Andreas - Institut für Weltwirtschaft (IfW) - 2012

Industrial organization is mainly concerned with the behavior of large firms, especially when it comes to oligopoly … theory. Experimental industrial organization therefore faces a problem: How can firms be brought into the laboratory? The …

Persistent link: https://www.econbiz.de/10010956088

Relative profit maximization and Bertrand equilibrium with convex cost functions

Satoh, Atsuhiro; Tanaka, Yasuhito - Institut für Weltwirtschaft (IfW) - 2014

The authors study pure strategy Bertrand equilibria in a duopoly in which two firms produce a homogeneous good with convex cost functions, and they seek to maximize the weighted sum of their absolute and relative profits. They show that there exists a range of the equilibrium price in...

Persistent link: https://www.econbiz.de/10010956106

Profits in pure Bertrand oligopolies

Stähler, Frank - Institut für Weltwirtschaft (IfW) - 1995

This paper demonstrates that the Bertrand paradox does not hold if cost functions are strictly convex. Instead, multiple equilibria exist which can be Pareto-ranked. The paper shows that the Pareto-dominant equilibrium may imply profus higher than in Cournot competition or may even sustain...

Persistent link: https://www.econbiz.de/10009276521

Endogenous unrestricted locations in markets with network effects

Ribeiro, Vitor - Institut für Weltwirtschaft (IfW) - 2015

author concludes that a penetration pricing strategy conducted by a third intermediary is more successful when the pre-entry …

Persistent link: https://www.econbiz.de/10011185916

Exchange-Rate Misalignments in Duopoly: The Case of Airbus and Boeing

Bénassy-Quéré, Agnès; Fontagné, Lionel; Raff, Horst - Institut für Weltwirtschaft (IfW) - 2009

We examine the effect of exchange-rate misalignments on competition in the market for large commercial aircraft. This market is a duopoly where players compete in dollar-denominated prices while one of them, Airbus, incurs costs mostly in euros. We construct and calibrate a simulation model to...

Persistent link: https://www.econbiz.de/10005818816

Social influences towards conformism in economic experiments

Hargreaves Heap, Shaun P. - Institut für Weltwirtschaft (IfW) - 2014

This paper reviews some of the economic experimental evidence on conformism. There is nothing to match the early psychology experiments where subjects were often swayed by the behaviour of others to an extraordinary degree, but there is plenty of evidence of conformism. This seems built-in to...

Persistent link: https://www.econbiz.de/10010956027

Regulating gasoline retail markets: The case of Germany

Wittmann, Nadine - Institut für Weltwirtschaft (IfW) - 2014

In 2011, price peaks in retail gasoline prices caused public outrage and attracted the attention of German regulatory agencies. After having examined the market, competition authorities concluded that tacit collusion existed but could not easily be prosecuted under the given competition law. In...

Persistent link: https://www.econbiz.de/10010956051

Incentives in supply function equilibrium

Vetter, Henrik - Institut für Weltwirtschaft (IfW) - 2014

The author analyses delegation in homogenous duopoly under the assumption that the firm-managers compete in supply functions. In supply function equilibrium, managers' decisions are strategic complements. This reverses earlier findings in that the author finds that owners give managers...

Persistent link: https://www.econbiz.de/10010956081

Environmental regulation of a global pollution externality in a bilateral trade framework: The case of global warming, China and the US

Gwatipedza, Johnson; Barbier, Edward B. - Institut für Weltwirtschaft (IfW) - 2013

Bilateral trade and capital flows have increased substantially between the United States and China yielding economic gains to both countries. However, these beneficial bilateral relations also bring about global environmental consequences including greenhouse gas emissions. We develop a...

Persistent link: https://www.econbiz.de/10010956084