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This paper discusses a simultaneous market entry game between two firms with different fixed costs. This case is a typical application of mixed strategy equilibria. Conventional wisdom would suggest that the low-cost firm is more likely to enter the market. This presumption is wrong. Instead,...
Persistent link: https://www.econbiz.de/10010275251
view that the Developing World did not exploit its relatively strong bargaining position in negotiations over sidepayments …-cooperative game theory and the subgame perfect Nash equilibrium as solution concept and compares the non-cooperative outcome with the … Nash bargaining solution of a hypothetical cooperative game. …
Persistent link: https://www.econbiz.de/10010275262
This paper discusses the gains from foreign direct investment (FDI) in a two country setting with endogenous markets structures under two alternative locations for the oligopolistic industry. If the oligopolistic industry is located in the domestic country only, we show that market concentration...
Persistent link: https://www.econbiz.de/10010275263
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This paper deals with fluctuations over time in the extent of the state-owned firm sector nationalization-privatization cycles (NPCs). Anecdotal observations of NPCs are supported threefold by systematic empirical evidence: first, for different regions and economic systems, second, for different...
Persistent link: https://www.econbiz.de/10010275267
It is established that with the reduction of trade barriers the number of competitors on the spatial markets involved increases. This increase has short run consequences for price competition. If the trade liberalisation is anticipated by the domestic producers they will respond by changing the...
Persistent link: https://www.econbiz.de/10010275271
In this paper we derive optimal stockpiling policies for an economy that faces an embargo threat with respect to essential resources. The properties of the optimal program depend crucially on the access of this country to a perfect capital market and on the factor allocation in embargo periods....
Persistent link: https://www.econbiz.de/10010275273
Persistent link: https://www.econbiz.de/10010275275
In this paper, an oligopolistic framework in which goods and market characteristics can be varied parametrically, is used to explain passthrough of prices as a reaction to exchange rate or cost changes. Price setting is compared between different markets, for the same product and between...
Persistent link: https://www.econbiz.de/10010275287