Elastic demand, sunk costs and the Kreps-Scheinkman extension of the Cournot model
AbstractThe paper shows that, with any rationing mechanism between the efficient and proportional extremes, the Kreps-Scheinkman two-stage quantity-price game reduces to the Cournot model if demand is uniformly elastic and if all costs are sunk at the first stage, thus providing positive results to set against existing negative statements.
Download InfoIf 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.
As the access to this document is restricted, you may want to look for a different version under "Related research" (further below) or search for a different version of it.
Bibliographic InfoArticle provided by Springer in its journal Economic Theory.
Volume (Year): 12 (1998)
Issue (Month): 1 ()
Note: Received: May 24, 1995; revised version: March 6, 1997
Contact details of provider:
Web page: http://link.springer.de/link/service/journals/00199/index.htm
Find related papers by JEL classification:
- C72 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Noncooperative Games
- D43 - Microeconomics - - Market Structure and Pricing - - - Oligopoly and Other Forms of Market Imperfection
- L13 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Oligopoly and Other Imperfect Markets
You can help add them by filling out this form.
CitEc Project, subscribe to its RSS feed for this item.
- Nicolas Gruyer, 2009. "A note on quantity precommitment, cournot outcome and asymmetric capacity costs," Economics Bulletin, AccessEcon, vol. 29(1), pages 384-391.
- repec:hal:wpaper:halshs-00587866 is not listed on IDEAS
- Peter Neary & Joe Tharakan, 2011.
"International Trade with Endogenous Mode of Competition in General Equilibrium,"
CREPP Working Papers
1111, Centre de Recherche en Economie Publique et de la Population (CREPP) (Research Center on Public and Population Economics) HEC-Management School, University of Liège.
- Neary, J. Peter & Tharakan, Joe, 2012. "International trade with endogenous mode of competition in general equilibrium," Journal of International Economics, Elsevier, vol. 86(1), pages 118-132.
- NEARY, J. Peter & THARAKAN, Joe, 2011. "International trade with endogenous mode of competition in general equilibrium," CORE Discussion Papers 2011038, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE).
- J Peter Neary & Joe Tharakan, 2005.
"Endogenous Mode of Competition in General Equilibrium,"
200526, School Of Economics, University College Dublin.
- Neary, J Peter & Tharakan, Joe, 2006. "Endogenous Mode of Competition in General Equilibrium," CEPR Discussion Papers 5943, C.E.P.R. Discussion Papers.
- Wu, Xin-wang & Zhu, Quan-tao & Sun, Laixiang, 2012. "On equivalence between Cournot competition and the Kreps–Scheinkman game," International Journal of Industrial Organization, Elsevier, vol. 30(1), pages 116-125.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Guenther Eichhorn) or (Christopher F Baum).
If references are entirely missing, you can add them using this form.