منابع مشابه
Capacity precommitment and price competition
We introduce a simple model of oligopolistic competition where firms first build capacity, and then, after observing the capacity decisions, choose a reservation price at which they are willing to supply their capacities. This model describes many markets more realistically than Kreps and Scheinkman’s (1983) model. We show that in this new model every pure strategy equilibrium yields the Courno...
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The paper describes an experiment designed to test if the equilibrium in a market characterized by capacity precommitment followed by price competition, as in the Kreps and Scheinkman model, conforms with the outcome predicted by that model, which is that capacities coincide with Cournot output levels. Sessions were run with capacity precommitment in inexperienced and experienced triopoly marke...
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Bertrand’s model of oligopoly, which gives per$ectly competitive outcomes, assumes lhat: (1) there is competition overprices and (2) production follow dle reulizafion of demand. We show that both of ~heseassumption are required. Moreprecisely, consider a two-stage oligopoly game where,~rst, there is simultaneous produc~ion,and, second, ajierproduction levels are made public, there i~price compe...
متن کاملCapacity precommitment and price competition yield the Cournot outcome
We introduce a simple model of oligopolistic competition where firms first build capacity, and then, after observing the capacity decisions, choose a reservation price at which they are willing to supply their capacities. This model describes many markets more realistically than the model of Kreps and Scheinkman [Kreps, D., Scheinkman, J., 1983. Quantity precommitment and Bertrand competition y...
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The traditional economic approach to index number theory is based on a ratio concept. The Konüs true cost of living index is a ratio of cost functions evaluated at the same utility level but with the prices of the current period in the cost function that appears in the numerator and the prices of the base period in the denominator cost function. The Allen quantity index is also a ratio of cost ...
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ژورنال
عنوان ژورنال: Journal of Mathematical Economics
سال: 2013
ISSN: 0304-4068
DOI: 10.1016/j.jmateco.2013.06.001