The paper studies a generic bilateral trade model with relationship-specific investments. Only the seller invests, and subsequent trade becomes inefficient if his investments are too low. We show that the seller may defect strategically under a fixed-price contract even though he attains any...

Different structures of lignite mines and power stations, which have appeared on the Polish market as a result of its transformation and the privatisation, were discussed. The attention is focused on the fact that the practice is overtaking the theory because there is lack of models of...

For methods of the profit division in the bilateral monopoly of the mine and the power station sug-gested in the first part of this paper the formulae for lignite price and shares in the joint profit of the mine and the power station are calculated. The proposed profit division contain: the...

For the hypothetical deposit with parameters similar to KWB “Konin” S.A. conditions; lignite prices and proposed divisions are calculated and results were discussed under the angle of the fairness (equity) of the division and the possibility of their approval by both sides. A sensitivity...

The newest findings in analysis of bilateral monopoly (BM) of lignite opencast mine & power plant have been discussed. The determinism of optimal solution not only in quantity of lignite (the size and shape of the ultimate pit) but also in its price has been depicted. It has been proposed to...

The application of Nash bargaining solution to profit division in negotiation between opencast lignite mine and power plant has been discussed. Different proposals of status quo point usage and ways of its determination for profit sharing both in strategic and tactical/operational negotiation...

The article focuses on the emergence and operation of cartels in sectors in which companies differ in terms of production costs. The author shows that stable cartels can operate in sectors made up of enterprises that are heterogeneous in terms of costs and based on price leadership. However,...

THE INFLUENCE OF LIGNITE OPENCAST MINE OPTIMISATION ON SOLUTION OF BILATERAL MONOPOLY MODEL OF LIGNITE MINE & POWER PLANT IN LONG RUN The classical and modified solution of bilateral monopoly for the system of opencast mine and power plant has been presented both using graphical and analytical...

THE INFLUENCE OF OWNERSHIP AND ORGANIZATIONAL STRUCTURE ON OPERATION OF BILATERAL MONOPOLY OF LIGNITE MINE AND POWER PLANT Lignite mine & power plant can operate as two separate entities (having the same or different owners), two entities operating in one holding (with joint owner) or as one...

The main objective of this paper is to investigate the impact of R&D cooperation on cartel formation in the product market. The R&D expenditures that precede the production process are aimed at the reduction of the unit manufacturing costs, and could create positive externalities for the...