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Endogenous Timing In A Mixed Duopoly: Weighted Welfare And Price Competition

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  • JUAN CARLOS BÁRCENA‐RUIZ
  • MÁXIMO SEDANO

Abstract

In this paper we analyse the endogenous order of moves in a mixed duopoly for differentiated goods. Firms choose whether to set prices sequentially or simultaneously. The private firm maximises profits while the public firm maximises the weighted sum of the consumer and producer surpluses (wighted welfare). It is shown that the result obtained in equilibrium depends crucially on the weigth given to the consumer surplus in weighted welfare and on the degree to which goods are substitutes or complements. We also anlyse whether the equilibria obtained maximise the sum of the consumer and producer suspluses or not. Finally we study whether the nationality of the private firm influences the results.
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  • Juan Carlos Bárcena‐Ruiz & Máximo Sedano, 2011. "Endogenous Timing In A Mixed Duopoly: Weighted Welfare And Price Competition," The Japanese Economic Review, Japanese Economic Association, vol. 62(4), pages 485-503, December.
    • Handle: RePEc:bla:jecrev:v:62:y:2011:i:4:p:485-503
    DOI: j.1468-5876.2010.00531.x
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    1. Antonio Cabrales & José-Ramón Uriarte, 2013. "Doubts and equilibria," Journal of Evolutionary Economics, Springer, vol. 23(4), pages 783-810, September.
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    6. Stauffer, Dietrich & Castelló, Xavier & Eguíluz, Víctor M. & San Miguel, Maxi, 2007. "Microscopic Abrams–Strogatz model of language competition," Physica A: Statistical Mechanics and its Applications, Elsevier, vol. 374(2), pages 835-842.
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    Cited by:

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    2. Heywood, John S. & Wang, Zerong & Ye, Guangliang, 2023. "Spatial price discrimination in a mixed duopoly input market," Regional Science and Urban Economics, Elsevier, vol. 102(C).
    3. Woohyung Lee & Ki-Dong Lee, 2018. "Strategic behaviors on privatization between regions," Asia-Pacific Journal of Regional Science, Springer, vol. 2(1), pages 227-242, April.
    4. Toshihiro Matsumura & Akira Ogawa, 2017. "Inefficient but Robust Public Leadership," Journal of Industry, Competition and Trade, Springer, vol. 17(4), pages 387-398, December.
    5. Toshihiro Matsumura & Akira Ogawa, 2014. "Corporate Social Responsibility or Payoff Asymmetry? A Study of an Endogenous Timing Game," Southern Economic Journal, John Wiley & Sons, vol. 81(2), pages 457-473, October.
    6. Junichi Haraguchi & Toshihiro Matsumura, 2020. "Endogenous public and private leadership with diverging social and private marginal costs," Manchester School, University of Manchester, vol. 88(5), pages 699-730, September.
    7. Luciano Fanti, 2017. "An Observable Delay Game with Unionised Managerial Firms," Scottish Journal of Political Economy, Scottish Economic Society, vol. 64(1), pages 50-69, February.
    8. Dong, Quan & Bárcena-Ruiz, Juan Carlos, 2014. "Corruption and decisions on opening up markets," Economic Modelling, Elsevier, vol. 36(C), pages 23-29.

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    More about this item

    JEL classification:

    • L00 - Industrial Organization - - General - - - General
    • L30 - Industrial Organization - - Nonprofit Organizations and Public Enterprise - - - General

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