Inventories and Endogenous Stackelberg Leadership in Two-period Cournot Oligopoly
AbstractTwo-period Cournot competition between n identical firms producing at constant marginal cost and able to store before selling has pure strategy Nash-perfect equilibria, in which some firms store to exert endogenously a leadership over rivals. The number of firms storing balances market share gains, obtained by accumulating early the output, with losses in margin resulting from increased sales and higher operation costs. This number and the industry inventories are non monotonic in n. Concentration (HHI) and aggregate sales increase due to the strategic use of inventories.
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Date of creation: Feb 2012
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- Mitraille, Sébastien & Moreaux, Michel, 2011. "Inventories and Endogenous Stackelberg Leadership in Two-period Cournot Oligopoly," TSE Working Papers 11-249, Toulouse School of Economics (TSE).
- Mitraille, SÃ©bastien & Moreaux, Michel, 2011. "Inventories and Endogenous Stackelberg Leadership in Two-period Cournot Oligopoly," LERNA Working Papers 11.15.349, LERNA, University of Toulouse, revised Feb 2012.
- Mitraille, Sébastien & Moreaux, Michel, 2012. "Inventories and Endogenous Stackelberg Leadership in Two-period Cournot Oligopoly," TSE Working Papers 12-322, Toulouse School of Economics (TSE).
- Mitraille, Sébastien & Moreaux, Michel, 2011. "Inventories and Endogenous Stackelberg Leadership in Two-period Cournot Oligopoly," IDEI Working Papers 681, Institut d'Économie Industrielle (IDEI), Toulouse.
- 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-2012-08-23 (All new papers)
- NEP-BEC-2012-08-23 (Business Economics)
- NEP-COM-2012-08-23 (Industrial Competition)
- NEP-IND-2012-08-23 (Industrial Organization)
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