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Simultaneous vs. sequential price competition with incomplete information

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  • Arozamena, Leandro
  • Weinschelbaum, Federico

Abstract

We compare equilibria with sequential and simultaneous moves under homogeneous-good Bertrand competition when unit costs are private information. Under an alternative interpretation, we examine the consequences of awarding a right of first refusal in a first-price procurement auction with endogenous quantity.

Suggested Citation

  • Arozamena, Leandro & Weinschelbaum, Federico, 2009. "Simultaneous vs. sequential price competition with incomplete information," Economics Letters, Elsevier, vol. 104(1), pages 23-26, July.
    • Handle: RePEc:eee:ecolet:v:104:y:2009:i:1:p:23-26
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    1. Beladi, Hamid & Chakrabarti, Avik & Marjit, Sugata, 2010. "Sequential spatial competition in vertically related industries with different product varieties," Economics Letters, Elsevier, vol. 106(2), pages 112-114, February.
    2. Lagerlof, Johan, 2012. "Does Cost Uncertainty in the Bertrand Model Soften Competition?," CEPR Discussion Papers 8817, C.E.P.R. Discussion Papers.
    3. Johan N. M. Lagerlöf, 2016. "Bertrand under Uncertainty: Private and Common Costs," Discussion Papers 16-02, University of Copenhagen. Department of Economics.
    4. Beladi, Hamid & Chakrabarti, Avik & Marjit, Sugata, 2010. "Cross-border merger, vertical structure, and spatial competition," Economics Letters, Elsevier, vol. 109(2), pages 112-114, November.
    5. Ilkka Leppänen, 2020. "Partial commitment in an endogenous timing duopoly," Annals of Operations Research, Springer, vol. 287(2), pages 783-799, April.

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    More about this item

    Keywords

    Oligopoly Auctions with endogenous quantity Right of first refusal Second-mover advantage;

    JEL classification:

    • D44 - Microeconomics - - Market Structure, Pricing, and Design - - - Auctions
    • K12 - Law and Economics - - Basic Areas of Law - - - Contract Law
    • L14 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Transactional Relationships; Contracts and Reputation

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