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Endogenous Timing in a Mixed Duopoly with Capacity Choice

Download or Read eBook Endogenous Timing in a Mixed Duopoly with Capacity Choice PDF written by Juan Carlos Barcena Ruiz and published by . This book was released on 2010 with total page 0 pages. Available in PDF, EPUB and Kindle.
Endogenous Timing in a Mixed Duopoly with Capacity Choice
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Total Pages : 0
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ISBN-10 : OCLC:1376401913
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Book Synopsis Endogenous Timing in a Mixed Duopoly with Capacity Choice by : Juan Carlos Barcena Ruiz

Book excerpt: An endogenous order of moves is analyzed in a mixed duopoly where firms first strategically choose their capacity levels and then compete at price level. In equilibrium, firms are shown to set prices simultaneously while capacities are chosen sequentially. This result is in contrast to the assumption of simultaneous order of moves for capacities choice made by Bárcena-Ruiz and Garzón (Economics Bulletin, Vol. 12 (2007), pp. 1-7) in a mixed duopoly. Besides, we find that there are two equilibria: in one of them the public firm is the leader in capacities and, in the other, the follower.


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