This paper examines the strategic use of debt financing in a quantity-setting duopoly with asymmetric costs. Before output competition (Cournot or Stackelberg) demand uncertainty takes place, both firms can strategically choose to issue commit an aggressive stance. We find that debt, serving as commitment device, help disadvantaged firm ( i.e. , high-cost Cournot follower Stackelberg competitio...

this paper examines critically the contributions of cournot, jevons and walras as the founders of classical mathematical economics from a methodological standpoint. advances in different economic schools and doctrines in the 19th century produced an environment of multi-dimensionality in economic analysis which was regarded by the pioneers of classical mathematical economists as a chaotic state...

In this paper, we consider an exchange economy à la Shitovitz (1973), with atoms and an atomless set. We associate with it a strategic market game of the kind first proposed by Lloyd S. Shapley and known as the Shapley window model. We analyze the relationship between the set of the Cournot-Nash equilibrium allocations of the strategic market game and the Walras equilibrium allocations of the e...