Preemption in Capacity and Price Determination - A Study of Endogenous Timing of Decisions for Homogeneous Markets
AbstractEndogenous timing can help to derive the time structure of decision making instead of assuming it as exogenously given. In our study we consider a homogeneous market where, like in the model of Kreps and Scheinkman (1983), sellers determine "sales capacities" before prices. Sellers must serve customers, but at higher costs when demand exceeds "capacitiy". Our model allows for preemption in "capacity" as well as in price determination. Since preemption means to decide before the random choice of cost parameters reflecting the stochastic nature of (excess) "capacity" costs, preemptive commitments are no obviously better timing dispositions.
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.
Bibliographic InfoPaper provided by CESifo Group Munich in its series CESifo Working Paper Series with number 309.
Date of creation: 2000
Date of revision:
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.:
- van Damme, Eric & Hurkens, Sjaak, 1999.
"Endogenous Stackelberg Leadership,"
Games and Economic Behavior, Elsevier,
Elsevier, vol. 28(1), pages 105-129, July.
- Damme, E.E.C. van & Hurkens, J.P.M., 1999. "Endogenous Stackelberg leadership," Open Access publications from Tilburg University urn:nbn:nl:ui:12-154410, Tilburg University.
- Damme, E.E.C. van & Hurkens, J.P.M., 1996. "Endogenous Stackelberg Leadership," Discussion Paper, Tilburg University, Center for Economic Research 1996-115, Tilburg University, Center for Economic Research.
- Damme, E.E.C. van & Hurkens, S., 1998. "Endogenous Stackelberg leadership," Open Access publications from Tilburg University urn:nbn:nl:ui:12-80496, Tilburg University.
- Eric van Damme & Sjaak Hurkens, 1996. "Endogenous Stackelberg leadership," Economics Working Papers 190, Department of Economics and Business, Universitat Pompeu Fabra.
- John C. Harsanyi & Reinhard Selten, 1988. "A General Theory of Equilibrium Selection in Games," MIT Press Books, The MIT Press, edition 1, volume 1, number 0262582384, December.
- Vital Anderhub & Werner GÃƒÂ¼th & Ulrich Kamecke & Hans-Theo Normann, 2003.
"Capacity Choices and Price Competition in Experimental Markets,"
Experimental Economics, Springer,
Springer, vol. 6(1), pages 27-52, June.
- Anderhub, Vital & GÃ¼th, Werner & Kamecke, Ulrich & Normann, Hans-Theo, 2001. "Capacity choices and price competition in experimental markets," SFB 373 Discussion Papers 2001,10, Humboldt University of Berlin, Interdisciplinary Research Project 373: Quantification and Simulation of Economic Processes.
- Anderhub, V. & Guth, W. & Kamecke, U. & Normann, H.T., 2001. "Capacity Cjoices and Price Competition in Experimental Market," Papers, Flinders of South Australia - Discipline of Economics 179, Flinders of South Australia - Discipline of Economics.
- Spencer, Barbara J. & Brander, James A., 1992. "Pre-commitment and flexibility : Applications to oligopoly theory," European Economic Review, Elsevier, Elsevier, vol. 36(8), pages 1601-1626, December.
- David M. Kreps & Jose A. Scheinkman, 1983. "Quantity Precommitment and Bertrand Competition Yield Cournot Outcomes," Bell Journal of Economics, The RAND Corporation, The RAND Corporation, vol. 14(2), pages 326-337, Autumn.
- Sadanand, Asha & Sadanand, Venkatraman, 1996. "Firm Scale and the Endogenous Timing of Entry: a Choice between Commitment and Flexibility," Journal of Economic Theory, Elsevier, Elsevier, vol. 70(2), pages 516-530, August.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Julio Saavedra).
If references are entirely missing, you can add them using this form.