We study cartel stability in a differentiated price-setting duopoly with returns to scale. We show that a cartel may be equally stable in the presence of lower differentiation, provided that the decreasing returns parameter is high. In addition we demonstrate that for a given factor of discount,...

This note studies the influence of a financial transaction tax and transaction costs on the optimal production and hedging strategies of a duopoly. Firms are exposed to demand uncertainty that leads to price risk and can hedge their risk exposure on a forward market. However, the forward...

In recent years economic agents and systems have become more and more interactive and juxtaposed, therefore the social sciences need to rely on the studies of physical sciences to analyze this complexity in the relationships. According to this point of view, the authors rely on the geometrical...

The paper unveils the market structure of container shipping, which suffers by many interpretations. Existing models regress between contestability, duopoly, monopolistic competition and game theory. This paper proposes an oligopoly model with two groups of companies: oligopolists and...

This paper investigates a timing game in a mixed duopoly, whereby a relatively inefficient state-owned firm maximizing the linear combination of its profit and social welfare competes against a relatively efficient, profit-maximizing private firm over the timing of entry. We find that the...

In this paper, we look at two research questions. First, can lower ad-valorem taxes, on the selling of news and on the selling of advertising, conduce to lower prices in the media sector? Second, can lower ad-valorem taxes stimulate firms to increase the diversity of content that they offer? The...

In this paper, we study the relationship between reconciliations in the Colombian electricity market and the bid prices by firms on the spot market. In this work,we propose a model of behavior of the firm to elaborate theoretical predictions about the relationship between the reconciliations and...

We consider a vertically related market where one quantity-setting and another price-setting downstream firm negotiate the terms of a two-part tariff contract with an upstream input supplier. In contrast to the traditional belief, we show that the price-setting firm produces a higher output and...