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We develop a dynamic entry model of multi-store oligopoly with heterogeneous markets, and estimate it using data on hamburger chains in Canada (1970–2005). Because more lucrative markets attract more entry, firms appear to favor the pres- ence of more rivals. Thus unobserved heterogeneity...
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The paper unveils the market structure of container shipping, which suffers by many interpretations. Existing models regress between contestability, duopoly, monopolistic competition and game theory. This paper proposes an oligopoly model with two groups of companies: oligopolists and...
Persistent link: https://www.econbiz.de/10011737687
In this paper, we use a partition function form game to analyze cartel formation among firms in Cournot competition. We … level of the cost advantage is "moderate", then the firm with the cost advantage leads the cartel formation among the firms …. Moreover, if the cost advantage is relatively high, then the formed cartel can also be stable in the sense of the core of a …
Persistent link: https://www.econbiz.de/10012432603
This paper tests the hypothesis that a (partial) reason why cartels - collective but costly and non-binding price agreements - lead to higher prices in a Bertrand oligopoly could be because of a selection effect: decision-makers who are willing to form price agreements are more likely to be less...
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The subject of this study is an oligopolistic market in which three firms operate in an environment of quantitative competition known as the Cournot oligopoly model. Firms and their production are differentiated, which brings the theoretical model closer to real market conditions. The main...
Persistent link: https://www.econbiz.de/10014418202
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