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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
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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
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Derivatives and default risk
Scholz, Sebastian - 2010
Upstream producers that possess market power, sell forwards with a lengthy duration to regional electricity companies (REC). As part of the liberalization of the electricity market, RECs have been privatized and exposed to a possible bankruptcy threat if spot prices have fallen below their...
Persistent link: https://www.econbiz.de/10003951795
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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
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The Oligopoly Lucas Tree : Consumption Risk and Industry-Level Risk Exposure
Dou, Winston - 2020
We analyze the quantitative asset-pricing implications of peers' strategic rivalry by embedding oligopolistic competition within an endowment economy. Rivalry intensity increases endogenously as the discount rate rises or expected growth declines, because peers care less about future...
Persistent link: https://www.econbiz.de/10012833606
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Uncertainty and Risk-aversion in a Dynamic Oligopoly with Sticky Prices
Valentini, Edilio - 2019
oligopoly characterized by a homogeneous non-storable good, sticky prices and uncertainty. Our model nests the classical dynamic … oligopoly model with sticky prices by Fershtman and Kamien (Fershtman and Kamien, 1987), which can be viewed as the continuous …
Persistent link: https://www.econbiz.de/10012889402
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Internet Appendix for 'The Oligopoly Lucas Tree : Consumption Risk and Industry-Level Risk Exposure'
Dou, Winston - 2020
This is the supplemental material to the paper titled "The Oligopoly Lucas Tree: Consumption Risk and Industry …
Persistent link: https://www.econbiz.de/10012825870
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Rivalry and Uncertainty in Complementary Investments with Dynamic Market Sharing
Azevedo, Alcino - 2015
We study the combined effects of revenue and cost uncertainty as well competition on the timing optimization of investments in complementarity inputs for duopoly markets where either spillover-knowledge is allowed or where proprietary-knowledge holds. For some input-sequencing investment...
Persistent link: https://www.econbiz.de/10013026054
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Uncertainty and risk-aversion in a dynamic oligopoly with sticky prices
Valentini, Edilio; Vitale, Paolo - 2019
oligopoly characterized by a homogeneous non-storable good, sticky prices and uncertainty. Our model nests the classical dynamic … oligopoly model with sticky prices by Fershtman and Kamien (Fershtman and Kamien, 1987), which can be viewed as the continuous …
Persistent link: https://www.econbiz.de/10011980689
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Investment in Oligopoly Under Uncertainty : Accordion Effect
Bouis, Romain; Huisman, Kuno; Kort, Peter M. - 2007
In the strategic investment under uncertainty literature the trade off between the value of waiting known from single decision maker models and the incentive to preempt competitors is mainly studied in duopoly models. This paper aims at studying competitive investments in new markets where more...
Persistent link: https://www.econbiz.de/10014055845