Secret information acquisition in Cournot markets
Two-stage game models of information acquisition in stochastic oligopolies require the assumption that firms observe the precision of information chosen by their competitors before determining quantities. This paper analyzes secret information acquisition as a one-stage game. Relative to the two-stage game firms are shown to acquire less information. Policy implications based on the two-stage game yield, therefore, too high taxes or too low subsidies for research activities. For the case of heterogeneous duopoly we briefly discuss comparative statics results.
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Volume (Year): 18 (2001)
Issue (Month): 3 ()
|Note:||Received: August 9, 1999; revised version: May 31, 2000|
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References listed on IDEAS
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- Hurkens, Sjaak & Vulkan, Nir, 2001.
"Information acquisition and entry,"
Journal of Economic Behavior & Organization,
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- Hwang, Hae-shin, 1995. "Information Acquisition and Relative Efficiency of Competitive, Oligopoly and Monopoly Markets," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 36(2), pages 325-40, May.
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- Li, Lode & McKelvey, Richard D. & Page, Talbot., 1985.
"Optimal Research for Cournot Oligopolists,"
563, California Institute of Technology, Division of the Humanities and Social Sciences.
- Jean-Pierre Ponssard, 1979. "The Strategic Role of Information on the Demand Function in an Oligopolistic Market," Management Science, INFORMS, vol. 25(3), pages 243-250, March.
- Hwang Hae-shin, 1993. "Optimal Information Acquisition for Heterogenous Duopoly Firms," Journal of Economic Theory, Elsevier, vol. 59(2), pages 385-402, April.
- Vives, Xavier, 1988. "Aggregation of Information in Large Cournot Markets," Econometrica, Econometric Society, vol. 56(4), pages 851-76, July.
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