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Endogenous preemption on both sides of a market

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  • Guth, Werner
  • Muller, Wieland
  • Potters, Jan

Abstract

We study a market in which both buyers and sellers can decide to preempt and set their quantities before market clearing.Will this lead to preemption on both sides of the market, only one side of the market, or to no preemption at all?We find that preemption tends to be asymmetric in the sense that it is restricted to only one side of the market (buyers or sellers).

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File URL: http://www.sciencedirect.com/science/article/B6V84-4KV2RBN-7/2/2efb19465cbcf1cec5f3e330a50d91d0
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Bibliographic Info

Article provided by Elsevier in its journal Economics Letters.

Volume (Year): 93 (2006)
Issue (Month): 1 (October)
Pages: 126-131

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Handle: RePEc:eee:ecolet:v:93:y:2006:i:1:p:126-131

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Web page: http://www.elsevier.com/locate/ecolet

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  1. Damme, E.E.C. van & Hurkens, J.P.M., 1996. "Endogenous Stackelberg Leadership," Discussion Paper 1996-115, Tilburg University, Center for Economic Research.
  2. Hamilton, Jonathan H. & Slutsky, Steven M., 1990. "Endogenous timing in duopoly games: Stackelberg or cournot equilibria," Games and Economic Behavior, Elsevier, vol. 2(1), pages 29-46, March.
  3. Matsumura, Toshihiro, 1999. "Quantity-setting oligopoly with endogenous sequencing," International Journal of Industrial Organization, Elsevier, vol. 17(2), pages 289-296, February.
  4. Saloner, Garth, 1987. "Cournot duopoly with two production periods," Journal of Economic Theory, Elsevier, vol. 42(1), pages 183-187, June.
  5. Anderson, Simon P. & Engers, Maxim, 1992. "Stackelberg versus Cournot oligopoly equilibrium," International Journal of Industrial Organization, Elsevier, vol. 10(1), pages 127-135, March.
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