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Asplund, Marcus - 1998

In this paper we consider how the degree of risk aversion, and demand/cost uncertainty, influence competition on oligopolistic markets. Under demand uncertainty, the best response strategies (both quantities and prices) are decreasing in risk aversion, but for cost uncertainty, quantities are...

Persistent link: https://www.econbiz.de/10014109903

Uncertainty, Market Structure and Strategic Trade Policy

Ning, Haokai - 2022

We introduce demand uncertainty into the context of strategic trade policy in an export rivalry market model, and we examine endogenous timing in the framework of Cournot-Stackelberg duopoly when firms decide in the first stage whether to set output level before or after resolution of...

Persistent link: https://www.econbiz.de/10014237069

Ranking supply function and cournot equilibria in a differentiated product duopoly with demand uncertainty

Sağlam, İsmail - In: Games 9 (2018) 3/60, pp. 1-13

In this paper, we provide a welfare ranking for the equilibria of the supply function and quantity competitions in a differentiated product duopoly with demand uncertainty. We prove that the expected consumer surplus is always higher under the supply function competition, irrespective of whether...

Persistent link: https://www.econbiz.de/10011891023

Cost uncertainty in an oligopoly with endogenous entry

De Pinto, Marco; Goerke, Laszlo - 2021

How does cost uncertainty affect the welfare consequences of an oligopoly? To answer this question, we investigate a … Cournot oligopoly in which firms produce a homogeneous commodity and market entry is feasible. Marginal costs are unknown ex …-up. Furthermore, the welfare loss due to oligopoly tends to increase with uncertainty. …

Persistent link: https://www.econbiz.de/10012620737

Oligopoly as a socially embedded dilemma: An experiment

Engel, Christoph; Zhurakhovska, Lilia - 2011

From the perspective of competitors, competition may be modeled as a prisoner's dilemma. Setting the monopoly price is cooperation, undercutting is defection. Jointly, competitors are better off if both are faithful to a cartel. Individually, profit is highest if only the competitor(s) is (are)...

Persistent link: https://www.econbiz.de/10010281843

Oligopoly as a Socially Embedded Dilemma : An Experiment

Engel, Christoph; Zhurakhovska, Lilia - 2011

From the perspective of competitors, competition may be modeled as a prisoner’s dilemma. Setting the monopoly price is cooperation, undercutting is defection. Jointly, competitors are better off if both are faithful to a cartel. Individually, profit is highest if only the competitor(s) is...

Persistent link: https://www.econbiz.de/10014186597

Oligopoly as a socially embedded dilemma : an experiment

Engel, Christoph; Zhurakhovska, Lilia - 2011

expected. -- Oligopoly ; Collusion ; experiment ; Uncertainty ; negative externalities ; prisoner's dilemma …

Persistent link: https://www.econbiz.de/10008822475

Informationsaustausch und trotzdem Wettbewerb? Unternehmensverhalten bei Nachfrageunsicherheit

Hornig, Stephan O. - 1999

general model of a heterogeneous oligopoly where the firms decide on their optimal range of information exchange in the first …

Persistent link: https://www.econbiz.de/10010305090

Strategic Exploitation of a Common Resource Under Environmental Risk

Fesselmeyer, Eric; Santugini, Marc - 2014

We study the effect of environmental risk on the extraction of a common resource. Using a dynamic and non-cooperative game in which an environmental event impacts the renewability and the quality of the resource, we show that the anticipation of such an event has an ambiguous effect on...

Persistent link: https://www.econbiz.de/10014176447

Capacity Choice under Uncertainty with Product Differentiation

Behrens, Christiaan - 2012

This article analyses the capacity-then-price game for a duopoly market. We add to the literature by explicitly taking product differentiation into account. We study the impact of capacity costs, demand uncertainty, and vertical and horizontal product differentiation on equilibrium capacities,...

Persistent link: https://www.econbiz.de/10013098833