Journal article
ENDOGENOUS TIMING IN A MIXED DUOPOLY AND PRIVATE DUOPOLY - 'CAPACITY-THEN-QUANTITY' GAME: THE LINEAR DEMAND CASE
Australian economic papers, Vol.48(2), pp.138-150
06/2009
DOI: 10.1111/j.1467-8454.2009.00369.x
Abstract
We consider a game of endogenous timing of sequential choice of capacity and quantity with observable delay in a mixed duopoly and a private duopoly. In mixed duopoly, we find that a simultaneous play at the capacity stage or at the quantity stage can never be supported as subgame perfect Nash equilibrium (SPNE); whereas a simultaneous play at each stage turns out to be the unique SPNE in a private duopoly. In mixed duopoly there is multiplicity of equilibria and all SPNEs require sequentiality at the capacity as well as quantity stage.
Details
- Title: Subtitle
- ENDOGENOUS TIMING IN A MIXED DUOPOLY AND PRIVATE DUOPOLY - 'CAPACITY-THEN-QUANTITY' GAME: THE LINEAR DEMAND CASE
- Creators
- Yuanzhu Lu - Central University of Finance and EconomicsSougata Poddar - Hanyang University
- Resource Type
- Journal article
- Publication Details
- Australian economic papers, Vol.48(2), pp.138-150
- DOI
- 10.1111/j.1467-8454.2009.00369.x
- ISSN
- 0004-900X
- eISSN
- 1467-8454
- Publisher
- Wiley
- Number of pages
- 13
- Language
- English
- Date published
- 06/2009
- Academic Unit
- Economics
- Record Identifier
- 9984963150102771
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