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Collusion sustainability with a capacity constrained firm

Madio, Leonardo; Pignataro, Aldo - 2022

We study an infinitely repeated oligopoly game in which firms compete on quantity and one of them is capacity constrained. We show that collusion sustainability is non-monotonic in the size of the capacity constrained firm, which has little incentive to deviate from a cartel. We also present...

Persistent link: https://www.econbiz.de/10013473721

Guaranteed renewable life insurance under demand uncertainty

Hoy, Michael; Mirza, Afrasiab; Sadanand, Asha B. - 2018

literature that, when there is (only) risk type uncertainty, the optimal GR contract with renewal price set at the actuarially … fair price for low risk types provides full insurance against reclassification risk. We develop a model that includes … unpredictable (and unobservable) fluctuations in demand for life insurance as well as changes in risk type (observable) over …

Persistent link: https://www.econbiz.de/10011864322

Export decision under risk

Sousa, José de; Disdier, Anne-Célia; Gaigné, Carl - 2016

regularities by developing a new firmbased trade model wherein managers are risk averse. Higher volatility induces the reallocation …

Persistent link: https://www.econbiz.de/10011547934

Entry dynamics, capacity utilisation and productivity in a dynamic open economy

Aloi, Marta; Dixon, Huw - 2002

This paper analyses an open economy Ramsey model with an endogenous labour supply without capital. The technology defines an optimal firm size. Changes to the number of firms is subject to adjustment costs, so that the entry dynamics is determined endogenously. We find that there is a short run...

Persistent link: https://www.econbiz.de/10011409812

Capacity decisions with demand fluctuations and carbon leakage

Meunier, Guy; Ponssard, Jean-Pierre - 2014

For carbon-intensive, internationally-traded industrial goods, a unilateral increase in the domestic CO2 price may result in the reduction of the domestic production but an increase of imports. In such sectors as electricity, cement or steel, the trade flows result more from short-term regional...

Persistent link: https://www.econbiz.de/10010246094

Simultaneous supplies of dirty and green fuels with capacity constraint : is there a green paradox?

Gronwald, Marc; Long, Ngo Van; Röpke, Luise - 2013

This paper contributes to the green paradox literature by using a resource extraction framework with heterogeneous energy sources. A key feature of the model is a capacity constrained green backstop resource, which implies the simultaneous use of the expensive backstop resource and the cheaper...

Persistent link: https://www.econbiz.de/10009786209

Deep dynamics

Gottfries, Nils; Mickelsson, Glenn; Stadin, Karolina - 2021

How do firms adjust their output, inventories, employment and capital in response to demandsideshocks? To understand this, we estimate a reduced-form model using firm-level panel dataand we construct a theoretical model that can match the estimated impulse-response functions.A combination of...

Persistent link: https://www.econbiz.de/10012428917

The ambiguity triangle : uncovering fundamental patterns of behavior under uncertainty

Burghart, Dan; Epper, Thomas; Fehr, Ernst - 2015

risk preferences. Here, we develop an analogous tool for choice under uncertainty - the ambiguity triangle - and show that … characterize this heterogeneity with finite-mixture estimates of a one-parameter extension of Expected Utility Theory wherein 48 …

Persistent link: https://www.econbiz.de/10011286466

Uncertainty and fiscal policy in an asymmetric monetary union

Hefeker, Carsten (contributor); Zimmer, Blandine (contributor) - 2008

The paper examines the monetary-fiscal interactions in a monetary union model with uncertainty due to imperfect central bank transparency. We first show that monetary uncertainty disciplines fiscal policymakers and thereby reduces taxes, average inflation and output distortions. However, as more...

Persistent link: https://www.econbiz.de/10003749682

Collective risk-taking decisions with heterogeneous beliefs

Gollier, Christian - 2003

degree of pessimism of the representative agent is the mean of the individual ones weighted by their index of absolute risk …

Persistent link: https://www.econbiz.de/10011507677

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