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Risk of stock collapse is a genuine motivation for cooperative fisheries management. We analyse the effect of an … endogenously determined risk of stock collapse on the incentives to cooperate in a Great Fish War model. We establish that … offset the increased benefits from cooperation due to the presence of endogenous risk and the Great Fish Pact returns to …
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We study a stochastic version of Fudenberg and Tirole's (1985) preemption game to analyze the effects of jumps in the underlying uncertainty on equilibrium strategies. Two firms contemplate entering a new market where the demand follows a jump-diffusion process. Firms differ is the sunk costs of...
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In this study, we analyze the investment-timing problem and introduce a model of two firms competing for investment preemption, each of which knows in advance the time at which the economic condition that will have an impact on the investment changes. We qualitatively show how two firms...
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