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In this experiment, we analyze strategic delegation in a Cournot duopoly. Owners can choose among two different …, while the second contract gives an additional sales bonus. Although theory predicts the second contract to be chosen, it is …
Persistent link: https://www.econbiz.de/10009583883
are linear. The results help to reconcile theory with various empirical findings on mergers. -- efficient hedging …
Persistent link: https://www.econbiz.de/10009583894
orientation ; heterogenous market ; duopoly …
Persistent link: https://www.econbiz.de/10009612021
In this note we study a very simple trial & error learning process in the context of a Cournot oligopoly. Without any knowledge of the payoff functions players increase, respectively decrease, their quantity by one unit as long as this leads to higher profits. We show that despite the absence of...
Persistent link: https://www.econbiz.de/10009580461
We investigate simultaneous and sequential price competition in duopoly markets with differentiated products. In both …, just as predicted by the theory, whereas average follower prices are not above average prices in the simultaneous market … simultaneous-move markets whereas first movers do not. As in theory, there is a significant first-mover disadvantage when firms …
Persistent link: https://www.econbiz.de/10009617949
The theory of industrial organization has experienced an impressive boom by using the methods of (non-cooperative) game … theory. The conclusions depend, however. crucially on subtle details of the market decision processes about which there exist …
Persistent link: https://www.econbiz.de/10009578566
). In their duopoly game, firms can choose their quantities in one of two periods before the market clears. If a firm … leadership. Our data, however, does not confirm the theory. While Stackelberg equilibria are extremely rare we often observe …
Persistent link: https://www.econbiz.de/10009580476
We report on an experiment designed to compare Stackelberg and Cournot duopoly markets with quantity competition. For …
Persistent link: https://www.econbiz.de/10009580482
Most models of labor markets and (un)employment neglect how competition among firms or sectors of the economy affects their hiring of workers and working times. Our approach pays special attention to such effects by proposing a complex stage game where firms invest in capital equipment before...
Persistent link: https://www.econbiz.de/10009582404
neither holds the Principle of Maximum Differentiation - as in the duopoly model - nor does the Principle of Minimum …
Persistent link: https://www.econbiz.de/10009613612