Secret information acquisition in Cournot markets
AbstractTwo-stage game models of information acquisition in stochastic oligopolies require the assumption that firms observe the precision of information chosen by their competitors before determining quantities. This paper analyzes secret information acquisition as a one-stage game. Relative to the two-stage game firms are shown to acquire less information. Policy implications based on the two-stage game yield, therefore, too high taxes or too low subsidies for research activities. For the case of heterogeneous duopoly we briefly discuss comparative statics results.
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Bibliographic InfoArticle provided by Springer in its journal Economic Theory.
Volume (Year): 18 (2001)
Issue (Month): 3 ()
Note: Received: August 9, 1999; revised version: May 31, 2000
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Web page: http://link.springer.de/link/service/journals/00199/index.htm
Other versions of this item:
- Esther Hauk & Sjaak Hurkens, 1996. "Secret information acquisition in Cournot markets," Economics Working Papers 233, Department of Economics and Business, Universitat Pompeu Fabra, revised Aug 1997.
- Hauk, Esther & Hurkens, Sjaak, . "Secret information acquisition in cournot markets," Open Access publications from Universidad Carlos III de Madrid info:hdl:10016/6062, Universidad Carlos III de Madrid.
- 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
- D82 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Asymmetric and Private Information; Mechanism Design
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.:
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