A Quantity-Setting Mixed Duopoly with Inventory Investment as a Coordination Device

This paper examines a two-period mixed market model in which a welfaremaximizing public firm and a profit-maximizing private firm can use inventory investment as a strategic device. It is then demonstrated that the equilibrium in the second period coincides with the Stackelberg solution where the private firm is the leader, and at equilibrium, both social welfare and the private firm¡¯s profit are higher than in the game without inventory.

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Year of publication:	2011
Authors:	Ohnishi, Kazuhiro
Published in:	Annals of Economics and Finance. - China Economics and Management Academy, ISSN 1529-7373. - Vol. 12.2011, 1, 7, p. 109-119
Publisher:	China Economics and Management Academy
Subject:	Mixed duopoly \| Public firm \| Private firm \| Inventory investment

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Extent:	application/pdf
Type of publication:	Article
Language:	English
Classification:	C72 - Noncooperative Games ; D21 - Firm Behavior ; H42 - Publicly Provided Private Goods ; L13 - Oligopoly and Other Imperfect Markets ; L32 - Public Enterprises
Source:	RePEc - Research Papers in Economics

Persistent link: https://www.econbiz.de/10009195449