We investigate how the possibility of subsequently subcontracting production to each other influences rivals' initial competition for a contract or a market as a two-stage game. In its first stage, the two firms engage in price competition to supply a contract or a market. In the second stage,...

This article examines the incentives for Cournot oligopolists to share information about a common parameter or about firm-specific parameters. We assume that the private information that firms receive has equal accuracy and obeys a linear conditional expectation property. We find that when the...