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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

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

Tacit collusion under fairness and reciprocity

İriş, Doruk; Santos-Pinto, Luís - In: Games 4 (2013) 1, pp. 50-65

This paper departs from the standard profit-maximizing model of firm behavior by assuming that firms are motivated in part by personal animosity–or respect–towards their competitors. A reciprocal firm responds to unkind behavior of rivals with unkind actions (negative reciprocity), while at...

Persistent link: https://www.econbiz.de/10009753710

Ad-valorem taxes, prices and content diversification in the news market

Pires, Armando José Garcia - In: Games 14 (2023) 2, pp. 1-28

In this paper, we look at two research questions. First, can lower ad-valorem taxes, on the selling of news and on the selling of advertising, conduce to lower prices in the media sector? Second, can lower ad-valorem taxes stimulate firms to increase the diversity of content that they offer? The...

Persistent link: https://www.econbiz.de/10014422282

Network externalities and downstream collusion under asymmetric costs : a note

Lee, Jen Yao; Fan, Chen-Chia; Tsai, Chien-Shu - In: Games 14 (2023) 2, pp. 1-11

This paper considers the collusive stability of downstream competition in a vertical market with network externalities and cost asymmetry. A dynamic collusion game is constructed, and backward induction is employed to solve the subgame perfect Nash equilibrium. We show that larger network...

Persistent link: https://www.econbiz.de/10014422321

Price and quantity competition under vertical pricing

Basak, Debasmita - In: Games 14 (2023) 4, pp. 1-8

We consider a vertically related market where one quantity-setting and another price-setting downstream firm negotiate the terms of a two-part tariff contract with an upstream input supplier. In contrast to the traditional belief, we show that the price-setting firm produces a higher output and...

Persistent link: https://www.econbiz.de/10014426325

Oligopoly pricing : the role of firm size and number

Bos, Iwan; Marini, Marco - In: Games 14 (2023) 1, pp. 1-16

This paper examines a homogeneous-good Bertrand-Edgeworth oligopoly model to explore the role of firm size and number in pricing. We consider the price impact of merger, break up, investment, divestment, entry and exit. A merger leads to higher prices only when it increases the size of the...

Persistent link: https://www.econbiz.de/10014420154

The connection between imported inputs and exports : the importance of strategic interdependence

Mukherjee, Arijit; Liu, Yao - In: Games 14 (2023) 1, pp. 1-14

Ignoring strategic interactions among final goods producers, the extant theoretical literature shows that lower costs of imported inputs increase the exports of the final goods using those inputs. Hence, it does not explain the empirically relevant positive relationship between the costs of...

Persistent link: https://www.econbiz.de/10014420158

Cartel formation in Cournot competition with asymmetric costs : a partition function approach

Abe, Takaaki - In: Games 12 (2021) 1/14, pp. 1-16

In this paper, we use a partition function form game to analyze cartel formation among firms in Cournot competition. We assume that a firm obtains a certain cost advantage that allows it to produce goods at a lower unit cost. We show that if the level of the cost advantage is "moderate", then...

Persistent link: https://www.econbiz.de/10012432603

Is voting for a cartel a sign of cooperativeness?

Gillet, Joris - In: Games 12 (2021) 2, pp. 1-10

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...

Persistent link: https://www.econbiz.de/10012547790

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