The endogeneity of equilibrium strategies makes modelling uncertainty about the behaviour of other economic players difficult. Recent developments in decision and game theory offer an opportunity to include strategic uncertainty as an explanatory variable in economic analysis. This paper...

This note analyzes the effect of product complementarity in a bilateral oligopoly. We show that offers of traders on the two sides of the market are strategic complements (substitutes) if and only if the two goods are substitutes (complements). The outcome of the bilateral oligopoly game...

We present a general equilibrium model with oligopsonistic market structure in one of the sectors. Buyers of inputs can set the price of inputs by being involved in rent seeking activities. The framework developed is applied to the Bulgarian economy in particular to the agro-food chain.

This paper shows that if domestic firms do not have identical unit costs, then the interplay between the Herfindahl index of concentration and the elasticity of the slope of the demand curve is of major importance in the determination of optimal trade policies. When the demand curve is concave,...

This paper considers an incumbent firm that is faced with a potential entrant in a vertically differentiated market. It demonstrates than an incumbent firm cannot prevent entry through product proliferation because of a commitment problem.

We study in this paper how the technological flexibility choices and equilibrium configurations depend first on the industry characteristics (demand function and cost parameters specific to the multiproduct flexible technology and to the product dedicated technologies) and, second, on the...