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Information Advantage in Cournot Oligopoly

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  • Einy, Ezra
  • Moreno, Diego
  • Shitovitz, Benyamin

Abstract

We model an oligopolistic industry where a number of firms that are asymmetrically informed about the environment compete via quantities, and we study how the information available to a firm affects its equilibrium profits. Indeed we find that if all firms have access to the same constant returns to scale technology, in any Bayesian equilibrium the information advantage of a firm is rewarded.
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  • Einy, Ezra & Moreno, Diego & Shitovitz, Benyamin, 2002. "Information Advantage in Cournot Oligopoly," Journal of Economic Theory, Elsevier, vol. 106(1), pages 151-160, September.
    • Handle: RePEc:eee:jetheo:v:106:y:2002:i:1:p:151-160
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