Endogenous Timing In A Mixed Duopoly And Private Duopoly -'Capacity-Then-Quantity' Game: The Linear Demand Case
AbstractWe 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. Copyright 2009 The Authors. Journal compilation 2009 Blackwell Publishing Ltd/University of Adelaide and Flinders University.
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Bibliographic InfoArticle provided by Wiley Blackwell in its journal Australian Economic Papers.
Volume (Year): 48 (2009)
Issue (Month): 2 (06)
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Web page: http://www.blackwellpublishing.com/journal.asp?ref=0004-900X
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- Tamás Balogh & Attila Tasnádi, 2012.
"Does timing of decisions in a mixed duopoly matter?,"
Journal of Economics,
Springer, vol. 106(3), pages 233-249, July.
- Balogh, Tamás L. & Tasnádi, Attila, 2011. "Does timing of decisions in a mixed duopoly matter?," MPRA Paper 30993, University Library of Munich, Germany.
- Kazuhiro Ohnishi, 2013. "A Two-production-period Model with State-owned and Labour-managed Firms," Institutions and Economies (formerly known as International Journal of Institutions and Economies), Faculty of Economics and Administration, University of Malaya, vol. 5(1), pages 41-56, April.
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