In this paper we attempt to explore the welfare effects of (process) R&D in an asymmetric duopoly with a homogeneous product under Cournot and supply function competitions. To this aim, we consider a two-stage perfect-information game where the duopolists compete in stage one in R&D investments...

In this paper, we consider a one-to-one matching model with two phases; an adolescence phase where individuals meet a number of dates and learn about their aspirations, followed by a matching phase where individuals are matched according to a version of Gale and Shapley's (1962) deferred...

This paper illustrates on a simple model of production economy with constant returns the incoherence of the partial competitive equilibrium analysis. The conflict between the Marshallian cross and the general equilibrium, which survives under many proposed restrictions of our economic domain,...

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. By numerical...

This paper presents a classifier system to detect stock market anomalies. The classifier system groups the last 15 years' daily data of the ISE100 Index of the Istanbul Securities Exchange into classes of fixed size, and computes for every observation in each class the return over the succeding...

In this paper we borrow from Ciarreta and Gutierrez-Hita (2012) a duopolistic industry structure with cost asymmetry and demand uncertainty, and using this structure we build a bargaining model to study the division of collusion profits - obtained from the joint selection of supply functions -...

In this paper, we formalize a prediction of Klemperer and Meyer (1989) arguing that the expected profits of oligopolistic firms may be higher under the supply function competition than under the stochastic Cournot competition in the presence of demand uncertainty, and investigate how this...

This paper introduces a class of endogenously proportional bargaining solutions. These solutions are inside the class of Directional solutions, which Chun and Thomson (1987) proposed to generalize (exogenously) proportional solutions of Kalai (1977). Endogenously proportional solutions are...

In this paper, we offer for two-person games an alternative characterization of Iterated Kalai-Smorodinsky-Nash Compromise (IKSNC), which was introduced and first characterized by Saglam (2015) for n-person games. We present an axiom called Gamma-Decomposability, satisfied by any solution that...

We study the effects of non-sterilized intervention on a spot foreign exchange rate using a multi-period game-theoretical model which involves an unspecified number of competitive traders, a finite number of strategic traders (forex dealers), and the central bank of the home country. Simulating...