In this paper we consider the effects of uncertainty on product differentiation by two oligopolistic firms within the context of the standard Hotelling model. We examine a subgame perfect equilibrium of a two-stage non-cooperative game. In the first stage, firms choose their location before...

The purpose of this paper is to provide an empirical application of duality under uncertainty. Using the indirect utility function we develop a simple, empirically implementable framework, that can be used to estimate the effects of price uncertainty on firms’ behaviour. The model is used to...

The purpose of this paper is to examine production decisions under output price uncertainty. Using a nonparametric estimation technique to estimate the first four moments of the unknown price distribution and applying duality, we provide a simple empirical framework for the analysis of supply...

This paper extends the literature on firms’ behaviour under uncertainty by providing a simple framework for empirical analysis of general non-expected utility behaviour. We show that standard duality techniques can be used to derive and estimate demand and supply functions for non-expected...

The purpose of this paper is to provide a simple example of an alternating offers bargaining model with breakdowns, in which both the breakdown probabilites and the order of play are determined endogenously. We consider two countries in a conflict over a contested asset. We assume that one of...

This paper shows that the Rubinstein alternating offers model can be modified to provide a Pareto superior outcome in the context of the right-to-manage union-firm bargaining. Two examples of bargaining protocols that yield a superior outcome are provided. In the first example, the union and the...

This paper considers the effects multilateral opportunistic behaviour on the firm’s capital structure. We show that multiple parties introduce greater incompleteness, because the firm cannot control future contracts in potential opportunistic coalitions. A higher debt-equity ratio increases...