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Cartel formation in Cournot competition with asymmetric costs : a partition function approach

Abe, Takaaki - In: Games 12 (2021) 1/14, pp. 1-16

In this paper, we use a partition function form game to analyze cartel formation among firms in Cournot competition. We … level of the cost advantage is "moderate", then the firm with the cost advantage leads the cartel formation among the firms …. Moreover, if the cost advantage is relatively high, then the formed cartel can also be stable in the sense of the core of a …

Persistent link: https://www.econbiz.de/10012432603

Is voting for a cartel a sign of cooperativeness?

Gillet, Joris - In: Games 12 (2021) 2, pp. 1-10

This paper tests the hypothesis that a (partial) reason why cartels - collective but costly and non-binding price agreements - lead to higher prices in a Bertrand oligopoly could be because of a selection effect: decision-makers who are willing to form price agreements are more likely to be less...

Persistent link: https://www.econbiz.de/10012547790

Cournot's oligopoly equilibrium under different expectations and differentiated production

Grisáková, Nora; Štetka, Peter - In: Games 13 (2022) 6, pp. 1-17

The subject of this study is an oligopolistic market in which three firms operate in an environment of quantitative competition known as the Cournot oligopoly model. Firms and their production are differentiated, which brings the theoretical model closer to real market conditions. The main...

Persistent link: https://www.econbiz.de/10014418202

Ranking supply function and cournot equilibria in a differentiated product duopoly with demand uncertainty

Sağlam, İsmail - In: Games 9 (2018) 3/60, pp. 1-13

In this paper, we provide a welfare ranking for the equilibria of the supply function and quantity competitions in a differentiated product duopoly with demand uncertainty. We prove that the expected consumer surplus is always higher under the supply function competition, irrespective of whether...

Persistent link: https://www.econbiz.de/10011891023

Location of firms and outsourcing

Colombo, Stefano; Mukherjee, Arijit - In: Games 14 (2023) 6, pp. 1-20

We analyze the location of final goods producers under spatial competition with strategic input price determination by firm-specific input suppliers when the final goods producers undertake complete outsourcing or bi-sourcing. Under complete outsourcing, the final goods producers locate closer...

Persistent link: https://www.econbiz.de/10014443302

Network externalities and downstream collusion under asymmetric costs : a note

Lee, Jen Yao; Fan, Chen-Chia; Tsai, Chien-Shu - In: Games 14 (2023) 2, pp. 1-11

This paper considers the collusive stability of downstream competition in a vertical market with network externalities and cost asymmetry. A dynamic collusion game is constructed, and backward induction is employed to solve the subgame perfect Nash equilibrium. We show that larger network...

Persistent link: https://www.econbiz.de/10014422321

Price and quantity competition under vertical pricing

Basak, Debasmita - In: Games 14 (2023) 4, pp. 1-8

We consider a vertically related market where one quantity-setting and another price-setting downstream firm negotiate the terms of a two-part tariff contract with an upstream input supplier. In contrast to the traditional belief, we show that the price-setting firm produces a higher output and...

Persistent link: https://www.econbiz.de/10014426325

Oligopoly pricing : the role of firm size and number

Bos, Iwan; Marini, Marco - In: Games 14 (2023) 1, pp. 1-16

This paper examines a homogeneous-good Bertrand-Edgeworth oligopoly model to explore the role of firm size and number in pricing. We consider the price impact of merger, break up, investment, divestment, entry and exit. A merger leads to higher prices only when it increases the size of the...

Persistent link: https://www.econbiz.de/10014420154

The connection between imported inputs and exports : the importance of strategic interdependence

Mukherjee, Arijit; Liu, Yao - In: Games 14 (2023) 1, pp. 1-14

Ignoring strategic interactions among final goods producers, the extant theoretical literature shows that lower costs of imported inputs increase the exports of the final goods using those inputs. Hence, it does not explain the empirically relevant positive relationship between the costs of...

Persistent link: https://www.econbiz.de/10014420158

Information sharing in oligopoly : sharing groups and core-periphery architectures

Currarini, Sergio; Feri, Francesco - In: Games 12 (2021) 4, pp. 1-17

The trade-off between the costs and benefits of disclosing a firm's private information has been the object of a vast literature. The absence of incentives to share information on a common market demand prior to competition has been advocated to interpret information sharing as evidence of...

Persistent link: https://www.econbiz.de/10013171765