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Investor’s Information Sharing with Firms in Oligopoly

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  • Myeonghwan Cho

Abstract

We study the incentives for an investor to transmit information to its invested firms in an oligopoly. The investor has more information on market conditions than the firms and reveals it publicly or privately before the firms produce the goods. When the investor uses a public channel to transmit information, the investor does not reveal any of its information to the firms. When the investor uses a private channel to transmit information, it partially reveals such a private information to the firm. Indeed, this is possible only when the investor invests relatively more in one firm than in another firm.

Suggested Citation

  • Myeonghwan Cho, 2019. "Investor’s Information Sharing with Firms in Oligopoly," Korean Economic Review, Korean Economic Association, vol. 35, pages 439-469.
    • Handle: RePEc:kea:keappr:ker-20190701-35-2-07
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    References listed on IDEAS

    as
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    More about this item

    Keywords

    Oligopoly; Cournot Competition; Information Asymmetry; Information Transmission;
    All these keywords.

    JEL classification:

    • C72 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Noncooperative Games
    • D21 - Microeconomics - - Production and Organizations - - - Firm Behavior: Theory
    • D82 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Asymmetric and Private Information; Mechanism Design
    • D83 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Search; Learning; Information and Knowledge; Communication; Belief; Unawareness
    • L13 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Oligopoly and Other Imperfect Markets

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