Preemption in Capacity and Price Determination - A Study of Endogenous Timing of Decisions for Homogeneous Markets
نویسندگان
چکیده
Endogenous timing can help to derive the time structure of decision making instead of assuming it as exogenously given. In our study we consider a homogeneous market where, like in the model of Kreps and Scheinkman (1983), sellers determine “sales capacities” before prices. Sellers must serve customers, but at higher costs when demand exceeds “capacitiy”. Our model allows for preemption in “capacity” as well as in price determination. Since preemption means to decide before the random choice of cost parameters reflecting the stochastic nature of (excess) “capacity” costs, preemptive commitments are no obviously better timing dispositions. JEL Classification: D4, D8, D2, L1 Sandra Güth University of Bielefeld Department of Economics PF 10 01 31 33501 Bielefeld Germany Werner Güth Humboldt-University at Berlin Department of Economics Spandauer Str. 1 10178 Berlin Germany email: [email protected]
منابع مشابه
Preemption in capacity and price determination: A study of endogenous timing of decisions for homogeneous markets
متن کامل
Preemption in capacity and price determination: A study of endogenous timing of decisions for homogeneous markets
متن کامل
درونزایی قیمت و مقدار در تجزیه و تحلیل تقاضای گوشت مرغ و گاو: شواهدی از گراف های غیرچرخشی سودار
In this study the causality relationship among variables in chicken and beef markets were investigated based on annual data from 1974 to 2004 in the I.S. of Iran. For this purpose, causality algorithms emerging from directed acyclic graphs were used in two cases, one based on co- integration analysis and innovation correlation matrix of Vector Error Correction Model (VECM) and the other using d...
متن کاملدرونزایی قیمت و مقدار در تجزیه و تحلیل تقاضای گوشت مرغ و گاو: شواهدی از گراف های غیرچرخشی سودار
In this study the causality relationship among variables in chicken and beef markets were investigated based on annual data from 1974 to 2004 in the I.S. of Iran. For this purpose, causality algorithms emerging from directed acyclic graphs were used in two cases, one based on co- integration analysis and innovation correlation matrix of Vector Error Correction Model (VECM) and the other using d...
متن کاملIdentification and Evaluation of Strategic Decisions in Gas Industry Using DEMATEL Method
Given the fluctuations of oil price in international markets and its effect on global economy, it is expected that gas industry and use of gas as an alternative energy, have become more important. Therefore, identification of strategic decisions in this industry has attracted increasing attention of managers and researchers. This study aims to identify and evaluate strategic decisions in the Na...
متن کامل