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choices after uncertainty has unraveled. We show existence and uniqueness of equilibrium under imperfect competition and … ; cost uncertainty ; Cournot competition ; First Best ; Second Best ; capacity obligations ; spot market regulation. …
Persistent link: https://www.econbiz.de/10003894164
The seminal work of Fudenberg and Tirole (1985) on how preemption erodes the value of an option to wait raises general questions about the relation between models in discrete and continuous time and thus about the interpretation of its central result, relying on an "infinitely fine grid". Here...
Persistent link: https://www.econbiz.de/10011449161
homogeneous and heterogeneous product, Cournot, Tullock competition) the Nash-2 equilibrium sets are obtained and considered as … tacit collusion or strong competition in dependence of additional security considerations …
Persistent link: https://www.econbiz.de/10013024415
, we consider symmetric Cournot competition and show that the endogenous level of CSR is positive for any given number of …
Persistent link: https://www.econbiz.de/10011657756
This paper introduces a number of game-theoretic tools to model collusive agreements among firms in vertically differentiated markets. I firstly review some classical literature on collusion between two firms producing goods of exogenous different qualities. I then extend the analysis to a...
Persistent link: https://www.econbiz.de/10011660599
Investments in Generating Capacities between a monopolist and two competing firms are compared where the firms invest in their capacity and fix the retail price while electricity demand is uncertain. A unit price auction determines the wholesale electricity price when the firms compete. They...
Persistent link: https://www.econbiz.de/10014075437
competition. We find that leverage has strategic effects, but those effects are much weaker than predicted by theory. Specifically … effects on product market competition. We test their model in a duopoly experiment under both, Bertrand and Cournot …, we find for price competition a general tendency towards collusion, which has the same overall consequences - but …
Persistent link: https://www.econbiz.de/10011539878
strategies (most likely with digital products) and quantity competition (capacity decisions for physical products). Based on …
Persistent link: https://www.econbiz.de/10010509336
allocate his resources so as to direct his competition towards particular rivals -- we call such competition selective. The … setting can be applied to a wide variety of cases: competition between firms, competition between political parties, warfare …
Persistent link: https://www.econbiz.de/10011378872
consumption by rendering brands a signalling device. In a price competition framework, we show that advertising increases … advertising, and competition might be socially undesirable. …
Persistent link: https://www.econbiz.de/10010366557