Desgranges, Gabriel; Gauthier, Stéphane - Centre d'Économie de la Sorbonne, Université Paris 1 … - 2014
We study rationalizable solutions in a linear asymmetric Cournot oligopoly. We show that symmetry across firms favors multiplicity of rationalizable solutions: A merger (implying a greater asymmetry across firms) makes out-of-equilibrium behavior less likely and should dampen &lquo;coordination&rquo;...