Information exchange in a Cournot duopoly with nonlinear demand function
AbstractWe study information sharing in a Cournot duopoly with isoelastic demand function, when the elasticity is uncertain. This is one of the first attempts to analyze the role of nonlinearity in such a framework. We found important results about the profitability of sharing informations when marginal costs are high and/or the variance between elasticity values is low. From the point of view of welfare considerations, not sharing information seems to be the best scenario.
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Bibliographic InfoPaper provided by University of Pavia, Department of Economics and Management in its series DEM Working Papers Series with number 049.
Length: 16 pages
Date of creation: Sep 2013
Date of revision:
Information exchange; Cournot duopoly; Hyperbolic demand;
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