Sequential capacity and price choices in a duopoly model with demand uncertainty (Q910316): Difference between revisions
From MaRDI portal
Set profile property. |
ReferenceBot (talk | contribs) Changed an Item |
||
Property / cites work | |||
Property / cites work: The Existence of Equilibrium in Discontinuous Economic Games, I: Theory / rank | |||
Normal rank | |||
Property / cites work | |||
Property / cites work: The existence of mixed-strategy equilibria in a price-setting oligopoly with convex costs / rank | |||
Normal rank | |||
Property / cites work | |||
Property / cites work: First Mover and Second Mover Advantages / rank | |||
Normal rank | |||
Property / cites work | |||
Property / cites work: Equilibrium in simple spatial (or differentiated product) models / rank | |||
Normal rank | |||
Property / cites work | |||
Property / cites work: Price competition in a capacity-constrained duopoly / rank | |||
Normal rank |
Latest revision as of 14:51, 20 June 2024
scientific article
Language | Label | Description | Also known as |
---|---|---|---|
English | Sequential capacity and price choices in a duopoly model with demand uncertainty |
scientific article |
Statements
Sequential capacity and price choices in a duopoly model with demand uncertainty (English)
0 references
1990
0 references
The paper analyses the effect of demand uncertainty in a two-stage duopoly model where firms first choose capacity, then price and shows that the equilibrium is sensitive to the decision structure of the model. If both the capacity choice and the price choice are made simultaneously no pure strategy equilibrium exists. If prices are chosen sequentially, the pricing stage has two pure strategy equilibria, but only for one of these does a pure strategy equilibrium of the full game exist. Finally, if both capacities and prices are chosen sequentially, a pure strategy equilibrium with strong first mover advantages exists.
0 references
demand uncertainty
0 references
two-stage duopoly model
0 references
pure strategy equilibrium
0 references
0 references