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On uncertainty when it affects successive markets

Author

Listed:
  • GABSZEWICZ, Jean

    (Université catholique de Louvain (UCL). Center for Operations Research and Econometrics (CORE))

  • TAROLA, Ornella
  • ZANAJ, Skerdilajda

Abstract

In this paper, we examine how uncertainty can affect successive mar- kets, when uncertainty can jointly influence both the upstream and down- stream markets conditions. The main result of the paper is that the equi- librium input and output quantities under stochastic dependence can be higher or lower than the corresponding quantities in the case of certainty equivalence depending on how much dependent are the events.
(This abstract was borrowed from another version of this item.)

Suggested Citation

  • GABSZEWICZ, Jean & TAROLA, Ornella & ZANAJ, Skerdilajda, 2009. "On uncertainty when it affects successive markets," LIDAM Discussion Papers CORE 2009027, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE).
  • Handle: RePEc:cor:louvco:2009027
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    File URL: http://www.uclouvain.be/cps/ucl/doc/core/documents/coredp2009_27.pdf
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    References listed on IDEAS

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    More about this item

    JEL classification:

    • L1 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance
    • L12 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Monopoly; Monopolization Strategies

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