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We study cartel stability in a differentiated price-setting duopoly with returns to scale. We show that a cartel may be equally stable in the presence of lower differentiation, provided that the decreasing returns parameter is high. In addition we demonstrate that for a given factor of discount,...
Persistent link: https://www.econbiz.de/10010289474
The aim of this paper is to extend Hamilton and Slutsky's (1990) endogenous timing game by including the possibility for players to cooperate. At an initial stage players are assumed to announce both their purpose to play early or late a given duopoly game as well as their intention to cooperate...
Persistent link: https://www.econbiz.de/10014179354
We develop a model of endogenous network formation in order to examine the incentives for R&D collaboration in a mixed oligopoly. Our analysis reveals that the complete network, where each firm collaborates with all others, is uniquely stable, industry-profit maximizing and efficient. This...
Persistent link: https://www.econbiz.de/10014219137
The pioneering Pasternack returns-policy model (1985, 2008b) analyzed channel-coordination with a single supplier catering to a retailer facing stochastic demand for a perishable product with a fixed price, and showed that giving partial returns of unsold stock to the retailer is the optimal...
Persistent link: https://www.econbiz.de/10013152820
We consider two versions of a Bertrand duopoly with asymmetric costs and homogeneous goods. They differ in whether predatory pricing is allowed. For each version, we derive the Myopic Stable Set in pure strategies as introduced by Demuynck, Herings, Saulle, and Seel (2017). We contrast our...
Persistent link: https://www.econbiz.de/10012925628
We study cartel stability in a differentiated price-setting duopoly with returns to scale. We show that a cartel may be equally stable in the presence of lower differentiation, provided that the decreasing returns parameter is high. In addition we demonstrate that for a given factor of discount,...
Persistent link: https://www.econbiz.de/10009304470
Persistent link: https://www.econbiz.de/10008729051
We introduce the concepts of joint games and compatibility. In a joint game, members of the grand coalition have the option to split and maximize their total worths, over different games. In order to determine whether the grand coalition will remain intact, we introduce the notion of...
Persistent link: https://www.econbiz.de/10013066014
The canonical selection contracting programme takes the agent's participation decision as deterministic and finds the optimal contract, typically satisfying this constraint for the worst type. Upon weakening this assumption of known reservation values by introducing independent randomness into...
Persistent link: https://www.econbiz.de/10013058782
We study continuous time Bertrand oligopolies in which a small number of firms producing similar goods compete with one another by setting prices. We first analyze a static version of this game in order to better understand the strategies played in the dynamic setting. Within the static game, we...
Persistent link: https://www.econbiz.de/10013144958