Rational Rationing in Stackelerbg Equilibria
AbstractIn the Contect of Duopoly Theory with Differentiated Products, Economic Theorists Usually Consider the Price As the Choice Variable for the Firms. Given the Prices, the Respective Quantities Demanded and Profits Can Be Computed. in This Paper, We Consider Strategy Spaces Consisting of Both Price and Production Variables. Two Models Are Developped: in One Model, the Firm Will Choose Its Price and the Number of Consumers It Will Serve (A Serving Capacity) While, in the Other Model, It Will Choose the Price and the Total Quantity It Will Produce (A Production Capacity). We Are Particularly Concerned in This Paper with the Existence of Endogenously-Determined Rationing in a Leader-Follower Duopoly Framework. We Show That Rationing Is Always (May Be) Present in Equilibrium When Strategies Are Expressed in Terms of the Price and the Production (Serving) Capacity. Moreover, Only the Leader Or First-Mover Will Or May Engage in Rationing. Rationing Appears Therefore As a Strategic Variable. What May Appear As a Fixed Price Equilibrium Or a Disequilibrium Turns Out in This Case to Be a Strategic Equilibrium with Completely Flexible Prices. an Example Is Worked Out.
Download InfoTo our knowledge, this item is not available for download. To find whether it is available, there are three options:
1. Check below under "Related research" whether another version of this item is available online.
2. Check on the provider's web page whether it is in fact available.
3. Perform a search for a similarly titled item that would be available.
Bibliographic InfoPaper provided by Universite de Montreal, Departement de sciences economiques in its series Cahiers de recherche with number 8631.
Length: 21P. pages
Date of creation: 1986
Date of revision:
Contact details of provider:
Postal: CP 6128, Succ. Centre-Ville, Montréal, Québec, H3C 3J7
Phone: (514) 343-6540
Fax: (514) 343-5831
Web page: http://www.sceco.umontreal.ca
More information through EDIRC
Duolies ; Rationing ; Game Theory ; Economic Equilibrium;
Other versions of this item:
You can help add them by filling out this form.
CitEc Project, subscribe to its RSS feed for this item.
- Enrico Pennings, 2001. "Price or quantity setting under uncertain demand and capacity constraints: An examination of the profits," Journal of Economics, Springer, vol. 74(2), pages 157-171, June.
- Boyer, Marcel & Moreaux, Michel, 1989.
"Rationnement endogène et structure de marché,"
Société Canadienne de Science Economique, vol. 65(1), pages 119-145, mars.
- Boyer, M. & Moreaux, M., 1989. "Rationnement Endogene et Structure de Marche," Cahiers de recherche 8907, Universite de Montreal, Departement de sciences economiques.
- Boyer, M. & Moreaux, M., 1989. "Rationnement Endogene Et Structure De Marche," Cahiers de recherche 8907, Centre interuniversitaire de recherche en économie quantitative, CIREQ.
- Boyer, Marcel & Lasserre, Pierre & Moreaux, Michel, 2012.
"A dynamic duopoly investment game without commitment under uncertain market expansion,"
International Journal of Industrial Organization,
Elsevier, vol. 30(6), pages 663-681.
- Marcel Boyer & Pierre Lasserre & Michel Moreaux, 2011. "A Dynamic Duopoly Investment Game without Commitment under Uncertain Market Expansion," CIRANO Working Papers 2011s-65, CIRANO.
- Hyytinen, Ari & Väänänen, Lotta, 2004. "Could Mr. and Mrs. Capital Market Imperfection Please Step Forward? An Empirical Analysis of Adverse Selection and Moral Hazard in Capital Markets," Discussion Papers 887, The Research Institute of the Finnish Economy.
- Marcel Boyer & Pierre Lasserre & Thomas Mariotti & Michel Moreaux, 2000. "Preemption and Rent Dissipation with Multiple Investments," CIRANO Working Papers 2000s-06, CIRANO.
- Marcel Boyer & Pierre Lasserre & Thomas Mariotti & Michel Moreaux, 2001. "Preemption and Rent Dissipation under Bertrand Competition," Cahiers de recherche du DÃ©partement des sciences Ã©conomiques, UQAM 20-04, Université du Québec à Montréal, Département des sciences économiques.
- Emmanuel Dechenaux & Dan Kovenock, 2011.
"Endogenous rationing, price dispersion and collusion in capacity constrained supergames,"
Springer, vol. 47(1), pages 29-74, May.
- Dechenaux, Emmanuel & Kovenock, Dan, 2003. "Endogenous Rationing, Price Dispersion, and Collusion in Capacity Constrained Supergames," Purdue University Economics Working Papers 1164, Purdue University, Department of Economics.
- Shakun Datta Mago & Emmanuel Dechenaux, 2009. "Price leadership and firm size asymmetry: an experimental analysis," Experimental Economics, Springer, vol. 12(3), pages 289-317, September.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Sharon BREWER).
If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.
If references are entirely missing, you can add them using this form.
If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.
If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.
Please note that corrections may take a couple of weeks to filter through the various RePEc services.