Background: This paper develops a game theoretic model that analyses the dynamics of competition among the leading domestic aviation firms in the Nigerian aviation industry. It probes the abilities of the prisoner dilemma to describe the subjective behaviour of the firms, which provide a...

We provide a model of dynamic duopoly in which firms face financial constraints and disappear when they are unable to fulfill them. We show that, in some cases, Cournot outputs are no longer supported in equilibrium, because if these outputs were set, a firm may have incentives to ruin the...

Many economic, political and social environments can be described as contests in which agents exert costly efforts while competing over the distribution of a scarce resource. These environments have been studied using Tullock contests, all-pay auctions and rankorder tournaments. This survey...

This paper derives a three stage Cournot-oligopoly game for product innovation, expenditure on introducing the product and competition on the product market. Product innovation is assumed to increase consumer utility but is effective only if the innovating firm invests in marketing, so that...

Many economic, political and social environments can be described as contests in which agents exert costly efforts while competing over the distribution of a scarce resource. These environments have been studied using Tullock contests, all-pay auctions and rank-order tournaments. This survey...

We analyze cooperative Cournot games with boundedly rational firms. Due to cognitive constraints, the members of a coalition cannot accurately predict the coalitional structure of the non-members. Thus, they compute their value following simple heuristics. In particular, they assign various...

The separation of ownership and control in firms brings up the issue of how and what to delegate to managers. There exists a large body of literature that analyzes strategic delegation in which owners understand the incentives that managers face when they operate in imperfectly competitive...

In this paper we study the nature of incentive contracts and organizational modes in a game where the firms' owners endogenously determine the order of moves at the quantity-setting stage, can choose to delegate the production decision to a manager and write appropriate incentive contracts. It...

In organizations, principals use decision rules to govern a more informed agent's behavior. We compare two such rules: delegation and veto. Recent work suggests that delegation dominates veto unless the divergence in preferences between the principal and the agent is so large that informative...

Costly competitions between economic agents are modeled as contests. Researchers use laboratory experiments to study contests and test comparative static predictions of contest theory. Commonly, researchers find that participants' efforts are significantly higher than predicted by the standard...