In this paper we verify the functioning of the standard neoclassical adjustment to equilibrium after a demand shock in … guaranteed. We show that the size of the demand shock determines the nature and number of equilibria generated by strategic …

It has been shown how trade policy can be strategically chosen while demand uncertainty significantly arises for the … arises in both demand and supply. In summary, demand uncertainty is important to determine trade policy while supply … significant. This is largely because subsidy induces domestic firms to internalize the supply uncertainty. When demand uncertainty …

is significant. Even with this risk of losing flexibility under significant demand variation, for some parameter values …We consider a simple Stackelberg model with demand uncertainty only for the first mover in order to compare the … the presence of demand uncertainty. We find that only when the realized demand is in an intermediate zone does the first …