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This article considers a Cournot duopoly under an isoelastic demand function and cost functions with built-in capacity … that stable Cournot equilibria may coexist with several other stable cycles. Then we compare the coexistent periodic …
Persistent link: https://www.econbiz.de/10004990644
This paper shows (1) that the Spence-Dixit-Vives model of linear demand for differentiated varieties is implied if supplies of substitutes reduce individual consumers' reservation prices as indicated in the paper, (2) that for the micro-foundation-based version SDV demand and endogenous sunk...
Persistent link: https://www.econbiz.de/10004991280
We show that when firms have incomplete information about the market demand and their costs, a (Bayesian) Cournot …, of Cournot equilibrium in a certain class of industries. More general results arise when negative prices are possible. …
Persistent link: https://www.econbiz.de/10004992503
Since price discrimination and selling below cost arise in the normal course of business and are usually legal for home firms, countering these practices by foreign firms provides a very weak rationale for antidumping duties. If antidumping duties were to provide a systematic defense against...
Persistent link: https://www.econbiz.de/10004966378
This paper tackles the issue of investment and optimal 'choice' of market structure for a foreign multinational enterprise (MNE) in a newly liberalized economy under uncertainty and in the presence of sunk costs. A minimalist duopolistic model is developed whereby a foreign investor's subjective...
Persistent link: https://www.econbiz.de/10004967058
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We embed signaling in the classical Cournot model in which several firms sell a homogeneous good. The quality is known … quantity decision. We characterize the unique signaling Cournot equilibrium in which the price signals quality to the … uninformed buyers. We then compare the signaling Cournot equilibrium with the full-information Cournot equilibrium. Signaling is …
Persistent link: https://www.econbiz.de/10008483959
This discussion paper resulted in a publication in <I>European Economic Review</I> (2014), 164-180.<P> We analyze the impact of product bundling in experimental markets. One firm has monopoly power in a first market but competes with another firm in a second market. We compare treatments where the...</p></i>
Persistent link: https://www.econbiz.de/10011256484