We show that the standard analysis of vertical relationships transposes directly to investment dynamics. Thus, when a firm undertaking a project requires an outside supplier (e.g., an equipment manufacturer) to provide it with a discrete input to serve a growing but uncertain demand, and if the...

Competition among profit-seeking firms in an oligopolistic industry inherently generates incentives for firms to commit to maximize a performance metric other than profit. We briefly review the underlying theory, analyze its ramifications in a Cournot duopoly, and consider feasibility...

We investigate a differentiated mixed duopoly in which private and public firms can choose to strategically set prices or quantities when the public firm is less efficient than the private firm. Thus, if the Singh and Vives assumption of positive primary outputs holds, (i) Bertrand competition...

This paper studies banks' competitive behavior on the deposit side of the Italian retail banking industry. We use a structural model to estimate demand for deposit services and test several supply models. We find that both the competitive, differentiated product Bertrand and the perfectly...

By introducing the government's preference for tax revenues into unionized mixed duopolies, this paper investigates how the preference can change the government's choice of tax regimes between ad valorem and specific taxes. Main results are as follows. Given that one of the tax regimes is...

In the framework Hotelling-Downs competition two players can freely choose a position along a one-dimensional market. We introduce restrictions of feasible strategies and analyze the consequences for players and consumers. In equilibrium players may minimally differentiate away from the center...

In this paper we extend Kreps and Scheinkam's (1983) results to mixed-duopolies with linear demands and constant unit costs. We show that quantity precommitment and Bertrand competition yield to Cournot outcomes not only in the case of private firms but also when a public firm is involved.

This paper studies how cross-sector strategic trade policy affects wages, country-wide profits, and welfare. I develop a simple model of two-country continuum-of-sectors general oligopolistic equilibrium. Demands are linear and sectors involve one domestic firm competing on quantity with its...

We analyze Bertrand and Cournot equilibria in an asymmetric oligopoly in which the firms produce differentiated substitutable goods and seek to maximize their relative profits instead of their absolute profits. Assuming linear demand functions and constant marginal costs we show the following...

In many markets, empirical evidence suggests that positive production cost shocks are transmitted more quickly and fully to final prices than negative ones. This article explains asymmetric price adjustment caused by firms imperfectly colluding on supra-competitive price levels. While positive...