We study endogenous coalition formation in contexts where individual (and group) payoffs depend on the entire coalition structure that might form. We capture potential interaction across coalitions by means of a partition function.

In England and Wales, wholesale electricity is sold in a spot market partly covered by long-term contracts which hedge the spot price. Two dominant conventional generators can raise spot prices to undesirable levels, which is profitable in the absence of contracts. If fully hedged, however, the...

It is a well established idea that Bertrand competition is more efficient in welfare terms than Cournot competition regardless of the degree of substituability or complementary of the commodities produced by the firms. In this paper I show that, introducing incomplete information abour rivals'...

Using the simple model of Comanor and Frech (1985), I show that vertical mergers and exclusive dealing contracts are not behaviorally equivalent.

This paper considers a three-stage game of a differentiated oligopoly: firms first make their entry decisions, then they choose production technologies and in the third stage of the game they decide product prices. The technology choice can be understood as selecting a technology from a pool of...

This paper considers the situation where some firms in an industry collude together as an RJV cartel to compete with other firms who individually engage in R&D. The analysis shows that this partial RJV cartelisation may increase market concentration. In comparison with pure R&D competition,...

This paper considers a three-stage game of a differentiated oligopoly: firms first make their entry decisions, then they choose production technologies and in the third stage of the game they decide product prices. The technology choice can be understood as selecting a technology from a pool of...

This paper considers the situation where some firms in an industry collude together as an RJV cartel to compete with other firms who individually engage in R&D. The analysis shows that this partial RJV cartelisation may increase market concentration. In comparison with pure R&D competition,...