Narrow search
Showing 1 - 10 of 17,905
Cover Image
Strategic vertical foreign investment under exchange rate uncertainty
Roy, Santanu; Viaene, Jean-Marie - 1996
This paper investigates the strategic incentives for vertical foreign investment by risk-neutral oligopolistic firms and the effect of exchange rate uncertainty on such investment. Firms competing in a domestic final good market meet their input requirements through import. They have the option...
Persistent link: https://www.econbiz.de/10009620813
Cover Image
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
Cover Image
Oligopoly and Risk Aversion
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
Cover Image
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
Cover Image
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
Cover Image
Does Cost Uncertainty in the Bertrand Model Soften Competition?
Lagerlöf, Johan N. M. - 2014
The answer is no. Although naive intuition may suggest the opposite, uncertainty about costs in the homogeneous-good Bertrand model intensifies competition: it lowers price and raises total surplus (but also makes profits go up). For some economic environments, this is implied by Hansen's (RAND,...
Persistent link: https://www.econbiz.de/10013054742
Cover Image
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
Cover Image
The choice of prices vs. quantities under uncertainty
Reisinger, Markus; Reßner, Ludwig - 2007 - This Version: May 2007
This paper analyzes a duopoly model with stochastic demand in which firms first choose their strategy variable and compete afterwards. Contrary to the existing literature, we show that firms do not always choose a quantity which is the variable that induces a smaller degree of competition. The...
Persistent link: https://www.econbiz.de/10010383028
Cover Image
Strategic Exploitation of a Common Resource under Environmental Risk
Fesselmeyer, Eric - 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/10013070501
Cover Image
Switching Costs, Dynamic Uncertainty, and Buyer-Seller Relationships
Murthy, Nagesh - 2007
We analyze strategic relationships between buyers and sellers in markets with switching costs and dynamic uncertainty by investigating the scenario wherein a representative buyer trades with two foreign sellers located in the same foreign country. We show that, under exchange rate uncertainty,...
Persistent link: https://www.econbiz.de/10012776363