Oligopoly, Macroeconomic Performance, and Competition Policy

Macroeconomic Policy and Performance

Technological Competition, Uncertainty, and Oligopoly

In an oligopoly context the present technological choice of a firm which expects to receive private revelant information just prior to the uncertain market stage has both a flexibility value and a strategic commitmenr value. In contrast to some common wisdom ideas we provide a natural two-stage competition framework in which an increase in uncertainty always raises the commitment value of the t...

Simultaneous Decentralized Competitive Supply Chain Network Design under Oligopoly Competition

This paper discusses a problem in which  decentralized supply chains enter the market simultaneously with no existing rival chains, shape the supply chains’ networks, and set wholesale and retail prices in a noncooperative manner. All the chains produce either identical or highly substitutable products. Customer demand is elastic and price-dependent. A three-step algorithm is proposed to solve ...

Robustness and Macroeconomic Policy

This paper considers the design of macroeconomic policies in the face of uncertainty. In recent years, several economists have advocated that when policymakers are uncertain about the environment they face and find it difficult to assign precise probabilities to the alternative scenarios that may characterize this environment, they should design policies to be robust in the sense that they mini...

Union Bargaining in an Oligopoly Market with Cournot-Bertrand Competition: Welfare and Policy Implications

We investigate the welfare effect of union activity in a relatively new oligopoly model, the Cournot-Bertrand model, where one firm competes in output (a la Cournot) and the other firm competes in price (a la Bertrand). The Nash equilibrium prices, outputs, and profits are quite diverse in this model, with the competitive advantage going to the Cournot-type competitor. A comparison of the resul...