In this paper we show that, if demand varies stochastically, and firms compete after the realization of demand shocks, the strategy space may be inferred from market evidence. The key idea is that, in equilibrium, each firm acts as a monopolist, choosing the optimal price-quantity combination...

In this paper, we represent 'meet the competition' guarantees as the endogenous outcome of a non-cooperative game. We model the phenomenon by assuming that firms compete in supply schedules in a two-stage process. We assume that the choice of a negatively sloped supply schedule is costly. In...

Abstract: The precautionary principle has been proposed as a basis for making decisions about envi- ronmental issues but remains controversial. Using a model of inductively justified propositions about awareness, this paper shows how the precautionary principle may be interpreted as a heuristic...

Reports on and analyses the results from a survey (conducted by Latif Adam) of 210 small or medium-sized garment enterprises in the Municipality of Bandung and the District of Bandung, Indonesia. This survey was intended to identify factors that led SMEs to engage in cooperative interfirm...

This paper estimates the immediate impact of China's accession to WTO on water, air and soil pollution in the Chinese manufacturing sector. The pollution effects of WTO accession are decomposed into three categories: composition, technical and scale effects. The results suggest that the...

Recent literature has examined the problem facing decisionmakers with bounded awareness, who may be unaware of some states of nature. A ques- tion that naturally arises here is whether a value of awareness (VOA), anal- ogous to VOI, can be attributed to changes in awareness.In this note it is...

We develop a model of games with awareness that allows for differential levels of awareness. We show that, for the standard modal logical interpretations of belief and awareness, a player cannot believe there exist propositions of which he is unaware. Nevertheless, we argue that a boundedly...

We focus on syntactic aspects of differential awareness that give rise to contractual disputes. Boundedly rational parties use a common language, but do not share a common understanding of the world, leading to ambiguity in both syntactic and semantic forms. In contractual relationships,...

We analyse access price setting to a bottleneck facility where the fa- cility owner also competes in the deregulated downstream market. We consider a continuum of market structures from Cournot to Bertrand. These market structures are fully characterised by a single parame- ter representing the...

We setup a model of competitive interaction among symmetric firms producing a homogeneous good that includes both Bertrand and Cournot competition as special cases. In our model the intensity of competition is captured by a single parameter - the perceived slope of competitors' sup- ply...