The make-or-buy choice in a mixed oligopoly: a theoretical investigation
نویسندگان
چکیده
We take a game theory approach to study the make-or-buy decisions of firms in a mixed duopoly. We assume that a managerial firm and a profit-oriented firm compete in a duopoly market for a final good, and they can choose whether making an intermediate input or buying it from a monopolistic upstream firm. We find that different equilibria may arise, depending on parameter constellations. In particular, if the technology used for the production of the intermediate input is too costly, then the internal organization of firms at equilibrium is mixed, creating a conflict with social preferences that would always privilege vertical integration to outsourcing. [JEL Codes: C72, L13, L22] E-mail: [email protected] ; [email protected].
منابع مشابه
On the efficiency of private and state-owned enterprises in mixed markets ¬リニ
a r t i c l e i n f o We examine oligopoly models of vertical product differentiation in which producing firms face variable costs of quality development. We show that comparing to private oligopoly, mixed oligopoly – whereby state-owned enterprises (SOEs) and private firms coexist – enhances social welfare but reduces firms' profitability. We also demonstrate that Bertrand competition makes fi...
متن کاملProviding a Model of the Effect of Emotional Commitment and Continued Commitment on Customers Going to Buy and Support Intention Case Study: Enghelab Sport Complex of Tehran
The aim of current study was providing a model of the effect of emotional commitment and continued commitment on customers’ going to buy and Support intention. The statistical population was the whole consumers of Enghelab sport complex of Tehran that based on the number of questions of questionnaires (30 questions) 300 samples were selected. With reviewing the literature of the study, the prim...
متن کاملComparative investigation on the correction factors of hydrogen permeability on CNTs-Mixed matrix membrane
This paper discusses different important gas permeation models such as “Maxwell”, “Bruggeman”, “Lewis-Neilson”, and “Pal” models to predict “Mixed Matrix Membranes” (MMMs) performance. The main parameter considered and discussed is the permeability of Hydrogen on Carbon Nanotubes (CNTs)-MMM. For evaluation of the theoretical models, experimental data of permeability for H2 were compa...
متن کاملComparative investigation on the correction factors of hydrogen permeability on CNTs-Mixed matrix membrane
This paper discusses different important gas permeation models such as “Maxwell”, “Bruggeman”, “Lewis-Neilson”, and “Pal” models to predict “Mixed Matrix Membranes” (MMMs) performance. The main parameter considered and discussed is the permeability of Hydrogen on Carbon Nanotubes (CNTs)-MMM. For evaluation of the theoretical models, experimental data of permeability for H2 were compa...
متن کاملPrice vs. Quantity in Oligopoly Games
Price-setting and quantity-setting oligopoly games lead to extremely different outcomes in the market. One natural way to address this problem is to formulate a model in which some firms use price while the remaining firms use quantity as their decision variable. We introduce a mixed oligopoly game of this type and determine its equilibria. In addition, we consider an extension of this mixed ol...
متن کامل