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Dynamic price competition with price adjustment costs and product differentiation
Vernasca, Gianluigi - 2003
We study a discrete time dynamic game of price competition with spatially differentiated products and price adjustment costs. We characterise the Markov perfect and the open-loop equilibrium of our game. We find that in the steady state Markov perfect equilibrium, given the presence of...
Persistent link: https://www.econbiz.de/10011593786
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Location of firms and outsourcing
Colombo, Stefano; Mukherjee, Arijit - In: Games 14 (2023) 6, pp. 1-20
firm-specific input suppliers when the final goods producers undertake complete outsourcing or bi-sourcing. Under complete … outsourcing, the final goods producers locate closer as the distance between the input suppliers decreases, but the distance … transportation costs between the input suppliers and the final goods producers depending on the distance between the input suppliers …
Persistent link: https://www.econbiz.de/10014443302
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Providing efficient network access to green power generators : a long-term property rights perspective
Petropoulos, Georgios; Willems, Bert - 2016
Coordinating the timing and location of new production facilities is one of the challenges of liberalized power sectors. It is complicated by the presence of transmission bottlenecks, oligopolistic competition, and the unknown prospects of low-carbon technologies. The authors build a model...
Persistent link: https://www.econbiz.de/10011613836
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The principle of minimum differentiation revisited : return of the median voter
Hanaki, Nobuyuki; Tanimura, Emily; Vriend, Nicolaas J. - 2016
We study a linear location model (Hotelling, 1929) in which n (with n = 2) boundedly rational players follow (noisy) myopic best-reply behavior. We show through numerical and mathematical analysis that such players spend almost all the time clustered together near the center, re-establishing the...
Persistent link: https://www.econbiz.de/10011447055
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Myopic oligopoly pricing
Bos, Iwan; Marini, Marco; Saulle, Riccardo D. - 2021
This paper examines capacity-constrained oligopoly pricing with sellers who seek myopic improvements. We employ the Myopic Stable Set solution concept and establish the existence of a unique pure-strategy price solution for any given level of capacity. This solution is shown to coincide with the...
Persistent link: https://www.econbiz.de/10012814516
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Price competition in product variety networks
Ushchev, Philip; Zenou, Yves - 2016
We develop a product-differentiated model where the product space is a network defined as a set of varieties (nodes) linked by their degrees of substitutability (edges). We also locate consumers into this network, so that the location of each consumer (node) corresponds to her "ideal" variety....
Persistent link: https://www.econbiz.de/10011548095
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Vertical differentiation and collusion : cannibalization or proliferation?
Gabszewicz, Jean Jaskold; Marini, Marco A.; Tarola, Ornella - 2016
In this paper, we tackle the dilemma of pruning versus proliferation in a vertically differentiated oligopoly under the assumption that some firms collude and control both the range of variants for sale and their corresponding prices, likewise a multiproduct firm. We analyse whether pruning...
Persistent link: https://www.econbiz.de/10011451580
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Collusive agreements in vertically differentiated markets
Marini, Marco A. - 2017
This paper introduces a number of game-theoretic tools to model collusive agreements among firms in vertically differentiated markets. I firstly review some classical literature on collusion between two firms producing goods of exogenous different qualities. I then extend the analysis to a...
Persistent link: https://www.econbiz.de/10011660599
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Ranking supply function and cournot equilibria in a differentiated product duopoly with demand uncertainty
Sağlam, İsmail - In: Games 9 (2018) 3/60, pp. 1-13
In this paper, we provide a welfare ranking for the equilibria of the supply function and quantity competitions in a differentiated product duopoly with demand uncertainty. We prove that the expected consumer surplus is always higher under the supply function competition, irrespective of whether...
Persistent link: https://www.econbiz.de/10011891023
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Is environmentalism the right strategy to decarbonize the world?
Marini, Marco; Tarola, Ornella; Thisse, Jacques-François - 2020
We study how the supply of environmentalism, which is defined by psychic benefits (costs) associated with the purchase of high-environmental (low-environmental) qualities, affects the way firms choose their products and the ensuing consequences for the global level of pollution. Contrary to...
Persistent link: https://www.econbiz.de/10012389897