R&D subsidies under asymmetric Cournot competition

R&D subsidies under asymmetric Cournot competition

Cournot Competition under Uncertainty∗

We analyze Cournot competition under demand uncertainty. We show that under rather general assumptions, the game has no asymmetric equilibria but multiple symmetric equilibria. Multiplicity is caused by the requirement of nonnegative prices and remains an issue also for simple demand specifications, such as the linear case. We then show that uniqueness of equilibrium is guaranteed if uncertaint...

Welfare losses under Cournot competition

In a market for a homogeneous good where firms are identical, compete in quantities and produce with constant returns, the percentage of welfare losses (PWL) is small with as few as five competitors for a class of demand functions which includes linear and isoelastic cases. We study markets with positive fixed costs and asymmetric firms. We provide exact formulae of PWL and robust constructions...

Bertrand and Cournot competition under asymmetric costs: number of active firms in equilibrium

We compare the number of active firms, i.e. the number of firms producing a positive quantity, in equilibrium across four different models of oligopoly: Cournot and Bertrand with homogeneous or differentiated goods. We concentrate on the linear demand structure with constant marginal but asymmetric costs. (With symmetric costs, the results trivialize to all firms active or all firms inactive.) ...

Evolutionary branching under asymmetric competition.

I investigate the evolution of a continuous trait, such as body size or arms level, which affects the outcome of competitive contests such that the contestant with the larger trait value has a higher probability of winning. I show that a polymorphism of distinctly different strategies can evolve in an initially monomorphic population even if mutations have only small phenotypic effect. In a sim...