Consider a financial market with N risk-averse asymmetrically informed traders. When N grows at the same rate as noise trading, prices in competitive and in strategic rational expectations equilibrium converge to each other at a rate of 1/N. Equilibria in the two scenarios are close when noise...

Given the speed with which we can sail nowadays, the over-loading of road and rail infrastructure and the need to minimize pollution, the seas and oceans gain a crucial importance in the context of globalization. The shipping industry represents an important component of the global economy,...

In the economic literature of the nineteenth and twentieth centuries, perfect competition rests on essentially two different types of foundations, the distinction of which has not always been emphasized enough. According to the first type, perfect competition prevails when the agents, small...

A legtöbb posztszocialista ország gazdasági rendszerében a piaci verseny egyre nagyobb szerephez jut. Nézetem szerint nemcsak annak lehettünk tanúi, hogy párhuzamosan az intézményrendszer fejlődésével növekedett a piaci verseny intenzitása és komplexitása, fokozódott a tőke...

This paper focuses on oligopolistic markets in which indivisible goods are sold by multiproduct firms to a continuum of homogeneous buyers, with measure normalized to one, who have preferences over bundles of products. Our analysis contributes to the literature on private, delegated agency games...

The present study seeks to uncover what the reason was for the downturn in competition authority activity as observed in the past decade, and whether the drop in the number of competition authority cases had any significant impact on competition in domestic markets. The study was based primarily...

We consider a software vendor first selling a monopoly platform and then an application running on this platform. He may face competition by an entrant in the applications market. The platform monopolist can benefit from competition for three reasons. First, his profits from the platform...

In a standard financial market model with asymmetric information with a finite number N of risk-averse informed traders, competitive rational expectations equilibria provide a good approximation to strategic equilibria as long as N is not too small: equilibrium prices in each situation converge...

We analyze the effect of price caps on equilibrium production and welfare in oligopoly under demand uncertainty. We find that high price caps always increase production and welfare as compared to the situation without price cap. Price caps close to marginal cost may lead to zero production,...

We analyze a market game where firms choose capacities under uncertainty about future market conditions and make output choices after uncertainty has unraveled. We show existence and uniqueness of equilibrium under imperfect competition and establish that capacity choices by strategic firms are...