Search Results - subject:"PROFIT MAXIMIZATION"

Relative profit maximization and Bertrand equilibrium with quadratic cost functions

Satoh, Atsuhiro; Tanaka, Yasuhito - Volkswirtschaftliche Fakultät, … - 2014

of the equilibrium price in duopolistic equilibria under pure absolute profit maximization, and the larger the weight on … the relative profit, the narrower and lower the range of the equilibrium price. In this sense relative profit maximization … by the firms is more aggressive than absolute profit maximization. …

Persistent link: https://www.econbiz.de/10011113946

Relative profit maximization in asymmetric oligopoly

Satoh, Atsuhiro; Tanaka, Yasuhito - In: Economics Bulletin 34 (2014) 3, pp. 1653-1664

We analyze Bertrand and Cournot equilibria in an asymmetric oligopoly in which the firms produce differentiated substitutable goods and seek to maximize their relative profits instead of their absolute profits. Assuming linear demand functions and constant marginal costs we show the following...

Persistent link: https://www.econbiz.de/10010803598

The Market in Economics: Behavioural Assumptions and Value Judgments.

Sandmo, Agnar - Institutt for samfunnsøkonomi, Norges Handelshøyskole … - 2014

non-economists. The hypotheses of utility and profit maximization and their use as building blocks in the theory of market …

Persistent link: https://www.econbiz.de/10010765657

Relative profit maximization and Bertrand equilibrium with convex cost functions

Satoh, Atsuhiro; Tanaka, Yasuhito - Institut für Weltwirtschaft (IfW) - 2014

lower than the range of the equilibrium price in duopolistic equilibria under pure absolute profit maximization, and the … profit maximization is more aggressive than absolute profit maximization. …

Persistent link: https://www.econbiz.de/10010956106

Irrelevance of Conjectural Variations in Duopoly under Relative Profit Maximization and Consistent Conjectures

Satoh, Atsuhiro; Tanaka, Yasuhito - In: Journal of Economics and Management 10 (2014) 2, pp. 101-115

relative profit maximization with constant conjectural variations, and arrive at the following results. 1) Conjectural …

Persistent link: https://www.econbiz.de/10010928982

Incentive for adoption of new technology in duopoly under absolute and relative profit maximization

Hattori, Masahiko; Tanaka, Yasuhito - In: Economics Bulletin 34 (2014) 3, pp. 2051-2059

and relative profit maximization. Technology itself is free, but each firm must expend a fixed set-up cost, for example …, for education of its staff. Under absolute profit maximization there are three types of sub-game perfect equilibria … relative profit maximization there are two sub-game perfect equilibria. Both firms, or no firm adopt new technology. And we …

Persistent link: https://www.econbiz.de/10011039055

Relative profit maximization and equivalence of Cournot and Bertrand equilibria in asymmetric duopoly

Satoh, Atsuhiro; Tanaka, Yasuhito - In: Economics Bulletin 34 (2014) 2, pp. 819-827

We study the relation between a Cournot equilibrium and a Bertrand equilibrium in an emph{asymmetric} duopoly with differentiated goods in which each firm maximizes its relative profit that is the difference between its profit and the profit of the rival firm. Both demand and cost functions are...

Persistent link: https://www.econbiz.de/10010836158

The irresistible charm of the micro-foundations dogma or the overwhelming force of the discipline's hard core?

Skouras, Thanos; Kitromilides, Yiannis - In: European Journal of Economics and Economic Policies: … 11 (2014) 1, pp. 67-79

The appeal of the 'Micro-foundations' project, which requires that all macroeconomic propositions are reduced to or derived from microeconomic ones, is strongly supported by the considerable force of what Lakatos calls the discipline's 'hard core'. This is particularly so if this project is...

Persistent link: https://www.econbiz.de/10014363197

Relative profit maximization and Bertrand equilibrium with convex cost functions

Satoh, Atsuhiro; Tanaka, Yasuhito - 2014

Persistent link: https://www.econbiz.de/10010240620

A theory of return-seeking firms

Murray, Cameron K.; Markey-Towler, Brendan - 2014

Persistent link: https://www.econbiz.de/10010242908