We develop a model of wage bargaining with private information in a duopoly. We investigate how product differentiation and market competition (Bertrand vs. Cournot competition) affect wages and strikes. If bargaining takes place at the industry-level, then both the wage outcome and the strike activity do not depend on the degree of product differentiation whatever the type of market competitio...

Geopolitical instability, climate change and black swan events disrupt the trade logistics of resources around globe. Events such as unforeseen closure Suez Canal or cessation between some players due to wars embargos are examples this. The problem predicting local price under modification an underlying transport network unites elements game theory, theory theory. micro-economic Cournot oligopo...

We present a general model of oligopolistic quantity competition in which each firm is able to produce multiple quality-differentiated products. We identify a tight relationship between asymmetries in the technological capabilities of firms and the equilibrium structure of product lines. The qualities offered by a firm group naturally into brands, and the positions of such brands are determined...

We reconsider Stackelberg’s classical critique of the Cournot duopoly, in the framework of endogenous timing for two-player games. For quantity duopoly we provide different sets of minimal conditions, directly on the demand and cost functions, yielding respectively the simultaneous and the two sequential modes of play. While our findings essentially confirm the predominance of the former, they ...

Using a linear complementarity approach, we simulate the Japanese wholesale electricity market as a transmission-constrained Cournot market. Following Hobbs (2001), our model adopts the Cournot assumption in the energy market and the Bertrand assumption in the transmission market. The Bertrand assumption means that generators consider transmission charges as being exogenous, which can be interp...

This paper reports an experiment conducted to examine the effects of changing the form of strategic interactions (Bertrand or Cournot), and changing underlying information conditions on the usefulness of the ‘ALM,’ a merger simulation device used by the U.S. Department of Justice. The experiment consists of twenty 60-period quadropolies. After period 40 a merger is induced. Behaviorally, Courno...