We employ a stylized model of the electricity industry to examine the effects of restructuring on capacity investments, retail prices and welfare, allowing for uncertain demand. We consider the following market configurations: (i) integrated monopoly, (ii) integrated duopoly with wholesale trade, and (iii) separated duopoly with wholesale trade. We find that generators install sufficient capaci...

In this paper, the Bertrand's price competition in the retail duopoly with asymmetric costs is analyzed. Retailers sell substitute products in the framework of the classical economic order quantity (EOQ) model with linear demand function. The market potential and competitor price are considered to be the bifurcation parameters of retailers. Levels of the barriers to market penetration depending...

We propose a space–time Hotelling model that introduces a unit size of the vertical time axis in the classical Hotelling unit interval model. The proposed model allows explicit consideration of the probability that a consumer arrives at a retail store up to time t to purchase goods. The proposed model is useful in a variety of retailing problems. We briefly demonstrate an application of the pro...

Cooperative advertising is a key incentive offered by a manufacturer to influence retailers’ promotional decisions. We study cooperative advertising in a dynamic retail duopoly where a manufacturer sells his product through two competing retailers. We model the problem as a Stackelberg differential game in which the manufacturer announces his shares of advertising costs of the two retailers or ...

W examine, in a strategic setting, the broad issue of how retail channel structures—retail monopoly versus retail duopoly—impact a manufacturer’s optimal new product design, both in terms of engineering design specifications as well as manufacturer and retailer profits. Our strategic framework enables manufacturers in specific contexts to anticipate the reactions of the retailers and competitiv...

Duopoly game theory is applied to the wood industrial markets (sawnwood and pulpwood markets) in the North of Iran. The Nash equilibrium and the dynamic properties of the system based on marginal adjustments are determined. The probability that the Nash equilibrium will be reached is almost zero. The dynamical properties of sawnwood and pulpwood prices derived via the duopoly game model are fou...

duopoly game theory is applied to the wood industrial markets (sawnwood and pulpwood markets) in the north of iran. the nash equilibrium and the dynamic properties of the system based on marginal adjustments are determined. the probability that the nash equilibrium will be reached is almost zero. the dynamical properties of sawnwood and pulpwood prices derived via the duopoly game model are fou...

In economics duopoly is a market dominated by two firms large enough to influence the market price. Stackelberg presented a dynamic form of duopoly that is also called 'leader-follower' model. We give a quantum perspective on Stackelberg duopoly that gives a backwards-induction outcome same as the Nash equilibrium in static form of duopoly also known as Cournot's duopoly. We find two qubit quan...

In economics duopoly is a market dominated by two firms large enough to influence the market price. Stackelberg presented a dynamic form of duopoly that is also called ‘leader-follower’ model. We give a quantum perspective on Stackelberg duopoly that gives a backwards-induction outcome same as the Nash equilibrium in static form of duopoly also known as Cournot’s duopoly. We find two qubit quan...