Forming a common agency in oligopoly may introduce both advantageous and disadvantageous implications on the profits of the firms, if agents have access to private information about their costs. In addition to facilitating better coordination of production and pricing decisions, a common agency...

A firm in a duopolistic market in which there is incomplete information about cost may benefit from having less precise prior information than its competitor. Experience in production provides firms with internally generated private signals about cost. As a result, the marginal return to...