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Internal Organization of Firms and Cartel Formation

Ortega, Olaizola; Norma, María; Kuipers, Jerome - Departamento de Fundamentos del Análisis Económico I, … - 2004

only known solution that satisfies core stability, strong aggegate monotonicity and null player out property in the class … of balanced games. The SD-prenucleolus is the only known solution that satisfies core stability continuity and is …

Persistent link: https://www.econbiz.de/10009364647

Silence is golden: communication, silence, and cartel stability

Basuchoudhary, Atin; Conlon, John R. - Volkswirtschaftliche Fakultät, … - 2013

This paper studies how cartel stability is influenced by asymmetric information and communication about demand. Firms … its partners and another where it does not. We show that cartels are extremely unstable when the informed firm … communicates with the uninformed firms. However, when the informed firm does not communicate with the uninformed firms cartels can …

Persistent link: https://www.econbiz.de/10011110577

Absorbing Sets in Coalitional Systems

Ortega, Olaizola; Norma, María; García, Iñarra; … - Departamento de Economía Aplicada III (Econometría y … - 2001

The purpose of this paper is twofold: First, to present an approach and a solution for analyzing the stability of …

Persistent link: https://www.econbiz.de/10005518745

An Approach to the stability of international environmental agreements: the absorbing sets solution

Ortega, Olaizola; Norma, María - Departamento de Fundamentos del Análisis Económico I, … - 2003

approach leads to a larger degree of cooperation compared to models based on the internal-external stability approach. …

Persistent link: https://www.econbiz.de/10005518763

Choice of Flexible Production Technologies Under Strategic Delegation

Ruiz, Bárcena; Carlos, Juan; Ortega, Olaizola; Norma, … - Departamento de Fundamentos del Análisis Económico I, … - 2004

This work analyzes a managerial delegation model in which firms can choose between a flexible production technology which allows them to produce two different products and a dedicated production technology which limits production to only one product. We analyze whether the incentives to adopt...

Persistent link: https://www.econbiz.de/10005518772

Market Value Maximization through Strategic Delegation

Wang, Shinn-Shyr; Stiegert, Kyle W. - Agricultural and Applied Economics Association - AAEA - 2007

In this paper, we develop a model of strategic delegation in which shareholders maintain an objective of market value maximization (MVM) of the firm's assets as measured by a capital asset pricing model (CAPM). Optimal delegation requires that managers maximize a linear combination of expected...

Persistent link: https://www.econbiz.de/10005476733

Arm’s Length Provision of Public Services

Bennedsen, Morten; Schultz, Christian - CESifo - 2007

We analyze the economic consequences of strategic delegation of the right to decide between public or private provision of governmental service and/or the authority to negotiate and renegotiate with the chosen service provider. Our model encompass both bureaucratic delegation from a government...

Persistent link: https://www.econbiz.de/10005405773

The Customs Union Issue: Why do we Observe so few of them?

Facchini, Giovanni; Silva, Peri A.; Willmann, Gerald - CESifo - 2008

The number of preferential trade agreements has greatly increased over the past two decades, yet most existing bilateral arrangements take the form of free trade areas, and less than ten percent can be considered to be fully fledged customs unions. This paper develops a political economy model...

Persistent link: https://www.econbiz.de/10005406001

Strategic Delegation in Experimental Markets

Huck, Steffen; Müller, Wieland; Norman, Hans-Theo - CESifo - 2000

In this experiment, we analyze strategic delegation in a Cournot duopoly. Owners can choose among two different contracts which determine their managers' salaries. One contract simply gives managers incentives to maximize firm profits, while the second contract gives an additional sales bonus....

Persistent link: https://www.econbiz.de/10005406221

A Model of Strategic Delegation in Contests between Groups

Brandauer, Stefan; Englmaier, Florian - CESifo - 2006

We analyze a contest between two groups where group members have differing valuations for the contested rent. Generically the pivotal group member with the median valuation of the rent will not act himself but will want to send a group member that has preferences different to her own into the...

Persistent link: https://www.econbiz.de/10005406314