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Asplund, Marcus - 1998

In this paper we consider how the degree of risk aversion, and demand/cost uncertainty, influence competition on oligopolistic markets. Under demand uncertainty, the best response strategies (both quantities and prices) are decreasing in risk aversion, but for cost uncertainty, quantities are...

Persistent link: https://www.econbiz.de/10014109903

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

Uncertainty, Market Structure and Strategic Trade Policy

Ning, Haokai - 2022

We introduce demand uncertainty into the context of strategic trade policy in an export rivalry market model, and we examine endogenous timing in the framework of Cournot-Stackelberg duopoly when firms decide in the first stage whether to set output level before or after resolution of...

Persistent link: https://www.econbiz.de/10014237069

Cost uncertainty in an oligopoly with endogenous entry

De Pinto, Marco; Goerke, Laszlo - 2021

Cournot oligopoly in which firms produce a homogeneous commodity and market entry is feasible. Marginal costs are unknown ex …How does cost uncertainty affect the welfare consequences of an oligopoly? To answer this question, we investigate a … induces additional entry in market equilibrium and also raises the socially optimal number of firms. Since the first change …

Persistent link: https://www.econbiz.de/10012620737

Confidence, pessimism and their impact on product differentiation in a hotelling model with demand location uncertainty

Kauffeldt, Florian; Wiesenfarth, Boris Roland - 2014

We analyze a Hotelling location-then-price duopoly game under demand uncertainty with uniformly distributed consumers in a standard quadratic costs scenario. The novelty of our approach consists of assuming that firms' beliefs are represented by non-extreme-outcome-additive (neo-additive)...

Persistent link: https://www.econbiz.de/10010362151

Capacity Choice under Uncertainty with Product Differentiation

Behrens, Christiaan - 2012

This article analyses the capacity-then-price game for a duopoly market. We add to the literature by explicitly taking product differentiation into account. We study the impact of capacity costs, demand uncertainty, and vertical and horizontal product differentiation on equilibrium capacities,...

Persistent link: https://www.econbiz.de/10013098833

Risk-Averse Firms and Two-Part Tariffs under Uncertainty

Yin, Xiangkang - 2008

and only if the modeled market is fully covered in equilibrium. A risk-averse monopoly tends to generate less aggregate … net consumer surplus than a risk-neutral monopoly in partial-cover equilibrium but consumer welfare is indifferent when … the market is fully covered. In oligopoly, consumer welfare increases (decreases) in the Arrow-Pratt measure of absolute …

Persistent link: https://www.econbiz.de/10012722618

Oligopoly as a socially embedded dilemma: An experiment

Engel, Christoph; Zhurakhovska, Lilia - 2011

From the perspective of competitors, competition may be modeled as a prisoner's dilemma. Setting the monopoly price is …

Persistent link: https://www.econbiz.de/10010281843

Oligopoly as a Socially Embedded Dilemma : An Experiment

Engel, Christoph; Zhurakhovska, Lilia - 2011

From the perspective of competitors, competition may be modeled as a prisoner’s dilemma. Setting the monopoly price is …

Persistent link: https://www.econbiz.de/10014186597

Oligopoly as a socially embedded dilemma : an experiment

Engel, Christoph; Zhurakhovska, Lilia - 2011

From the perspective of competitors, competition may be modeled as a prisoner's dilemma. Setting the monopoly price is … expected. -- Oligopoly ; Collusion ; experiment ; Uncertainty ; negative externalities ; prisoner's dilemma …

Persistent link: https://www.econbiz.de/10008822475