Quantity-setting games with a dominant firm
AbstractWe consider a possible game-theoretic foundation of Forchheimer’s model of dominant-firm price leadership based on quantity-setting games with one large firm and many small firms. If the large firm is the exogenously given first mover, we obtain Forchheimer’s model. We also investigate whether the large firm can emerge as a first mover of a timing game.
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Bibliographic InfoPaper provided by Economics and Econometrics Research Institute (EERI), Brussels in its series EERI Research Paper Series with number EERI_RP_2009_25.
Date of creation: 09 2009
Date of revision:
Forchheimer; Dominant firm; Price leadership.;
Other versions of this item:
- 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
This paper has been announced in the following NEP Reports:
- NEP-ALL-2009-09-26 (All new papers)
- NEP-COM-2009-09-26 (Industrial Competition)
- NEP-GTH-2009-09-26 (Game Theory)
- NEP-IND-2009-09-26 (Industrial Organization)
- NEP-MIC-2009-09-26 (Microeconomics)
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