Many low-price guarantees are offered by small local firms who compete against much larger rivals. The prices of these larger rivals are often set nationally and thus are independent of local market conditions. Our objective in this paper is to explain why small firms in such environments might...

This paper considers the incentives for risk-averse firms to share their private information. They show that the introduction of risk aversion in some cases reverses the result in the literature that no such incentives exist. Further, they show that the output level of risk-averse Cournot...