differentiated product duopoly with demand uncertainty. We prove that the expected consumer surplus is always higher under the supply …In this paper, we provide a welfare ranking for the equilibria of the supply function and quantity competitions in a … degree of substitution, then the supply function competition can always be Pareto superior to the quantity competition in …

We model the production of complex goods in a large supply network. Each firmsources several essential inputs through … idiosyncraticdisruptions. However, there is a regime in which equilibrium supply networks are fragile, withsmall aggregate shocks to … relationships causing arbitrarily steep drops in output. The endogenousconfiguration of supply networks provides a new channel for …