This paper studies the design of trade policies in an uncertain third market with incomplete information. Governments in each of the two countries select either direct quantity controls or subsidies in an attempt to shift profits in favour of their own firms in an oligopolistic setting. It is...

We consider a repeated regulation model in an oligopoly under asymmetric information with pollution. An iterative procedure is proposed where the regulator designs stationary taxes, and firms are not required to be perfectly rational. They can form and update simple beliefs about their...

A Cournot oligopoly in which firms face incomplete information with respect to production capacities is studied. For the case where the firms’ capacities are stochastically independent, the functional form of equilibrium strategies is derived. If inverse demand is concave, a unique symmetric...

In oligopoly, imitating the most successful competitor yields very competitive outcomes. This theoretical prediction has been confirmed experimentally by a number of studies. A recent paper by Friedman et al. (2015) qualifies those results in an interesting way: while they replicate the very...

We examine the strategic behavior of leaders and followers in sequential duopoly experiments in which followers either perfectly observe the leaders' actions or else observe nothing. (...)

In aggregative games, each player's payoff depends on her own actions and an aggregate of the actions of all the players (for example, sum, product or some moment of the distribution of actions). Many common games in industrial organization, political economy, public economics, and...

Newsvendors, such as newspaper companies, face the challenge that they need to decide how many units to produce before facing the demand by customers, and that their products are perishable. Experimental studies have documented that individuals do not find the optimal solution to that problem...

We are constructing an imperfect competition general equilibrium model, with non-consumable money and labor market; our toolkit is an equilibrium default model of Shubik-Wilson (1978). Our result has an ‘equilibrium volatility' simultaneously occurring at all three markets: labor, goods, and...

In this paper, we investigate the optimal taxation policy in a differential oligopoly game where the competing firms share the access to a productive renewable resource. We show that, in a linear Feedback Nash Equilibrium of the game, a linear Markov tax, imposed on the output, and specified as...

In this paper, we propose an evolutionary model of oligopoly competition where agents can select between different behavioral rules to make decisions on productions. We formalize the model as a general class of evolutionary oligopoly games and then we consider an example with two specific rules,...