Advanced Search
MyIDEAS: Login

A Duopoly Model Of Fixed Cost Choice

Contents:

Author Info

  • Charles E. Hegji
Registered author(s):

    Abstract

    Comparison of firms in Cournot and Stackelberg equilibrium is a subject that has received much attention. A universally imposed assumption in most discussions of the Cournot and Stackelberg outcomes is that participants in markets are confronted with given cost structures. In some setups, firms are assumed to have identical costs. In others, firms have different costs. However, the sequence of costs of firms choosing output is fixed, as is the level of costs once the equilibrium is obtained.This assumption is, of course unrealistic, since firms invest considerable time and effort in cost cutting to either increase profit or market share. The purpose of the present paper is to study the impact of cost changes on firms in Cournot and Stackelberg equilibrium. We do this using a model similar that that of Neuman, Weigand, Gross, and Muenter (2001). The model assumes that firms can reduce marginal costs by investing in assets, thereby increasing fixed costs.

    Download Info

    If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
    File URL: http://nysea.bizland.com/nysea/publications/nyer/2004/NYER_2004_p044.pdf
    Download Restriction: no

    File URL: http://nysea.bizland.com/nysea/publications/nyer/2004/NYER_2004_p044.html
    Download Restriction: no

    Bibliographic Info

    Article provided by New York State Economics Association (NYSEA) in its journal New York Economic Review.

    Volume (Year): 35 (2004)
    Issue (Month): 1 ()
    Pages: 44-50

    as in new window
    Handle: RePEc:nye:nyervw:v:35:y:2004:i:1:p:44-50

    Contact details of provider:
    Web page: http://nysea.bizland.com/
    More information through EDIRC

    Related research

    Keywords:

    References

    References listed on IDEAS
    Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
    as in new window
    1. Sherrill Shaffer, 1993. "Stable cartels with a Cournot fringe," Working Papers 93-8, Federal Reserve Bank of Philadelphia.
    2. Anderson, Simon P. & Engers, Maxim, 1992. "Stackelberg versus Cournot oligopoly equilibrium," International Journal of Industrial Organization, Elsevier, vol. 10(1), pages 127-135, March.
    Full references (including those not matched with items on IDEAS)

    Citations

    Lists

    This item is not listed on Wikipedia, on a reading list or among the top items on IDEAS.

    Statistics

    Access and download statistics

    Corrections

    When requesting a correction, please mention this item's handle: RePEc:nye:nyervw:v:35:y:2004:i:1:p:44-50. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Eryk Wdowiak).

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If references are entirely missing, you can add them using this form.

    If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.