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This paper discusses a simultaneous market entry game between two firms with different fixed costs. This case is a typical application of mixed strategy equilibria. Conventional wisdom would suggest that the low-cost firm is more likely to enter the market. This presumption is wrong. Instead,...
Persistent link: https://www.econbiz.de/10010275251
In a duopoly market, aspiration levels express how much sellers want to earn given their expectations about the other …
Persistent link: https://www.econbiz.de/10010294797
This paper studies a Cournot duopoly in international trade so that the firms are exposed to exchange rate risk. A …
Persistent link: https://www.econbiz.de/10010300615
competition, ii) increases (decreases) the parameter region with a unique duopoly equilibrium (multiple equilibria), iii) reduces …
Persistent link: https://www.econbiz.de/10010303797
framework of an international duopoly with environmental regulations, this paper shows that an environmental tax imposed by the …
Persistent link: https://www.econbiz.de/10010332390
In a duopoly industry with environmentally differentiated products, we examine the effects of introducing a mandatory …
Persistent link: https://www.econbiz.de/10010333078
This paper focuses both on the competition process and the firms liability in environmental protection and the demonstration is made by comparing two models of safety investment. The rst one shows sensitive players to their environmental liability: they seek to minimize the technologies accident...
Persistent link: https://www.econbiz.de/10011608595
The tremendous growth of markets for credit derivatives since the mid 1990's has raised questions regarding the role of these instruments in the banking in- dustry which is heavily exposed to credit risk. However, while recent literature mainly focused on pricing and optimal decisions regarding...
Persistent link: https://www.econbiz.de/10010263017
In this paper, I compare two-part tariff competition to linear pricing in a vertically differentiated duopoly …
Persistent link: https://www.econbiz.de/10010263184
market structure from monopoly to duopoly under the assumption that software producers compete in technology rather than …, i.e. innovation. It is found that: (i) moving from monopoly to duopoly does increase the technology level set by firms … in the software industry; (ii) a duopoly adjusts more readily to global technological progress than a monopolist …
Persistent link: https://www.econbiz.de/10010276552