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Secret information acquisition in cournot markets

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  • Hauk, Esther
  • Hurkens, Sjaak

Abstract

Two-stage game models of information aequisition in stochastie oligopolies require the unrealistic assumption that firms observe the preeision of information ehosen by their eompetitors before determining quantities. This paper analyzes seeret information aequisition as a one-stage game. relative to the two-stage game firms are shown to acquire les information. Policy implications based on the two-stage game yield, therefore, too high taxes or too low subsidies for research aetivities. For the case of heterogeneous duopoly it is shown that comparative statics results partly depend on the observability assumption.

Suggested Citation

  • Hauk, Esther & Hurkens, Sjaak, 1997. "Secret information acquisition in cournot markets," UC3M Working papers. Economics 6062, Universidad Carlos III de Madrid. Departamento de Economía.
    • Handle: RePEc:cte:werepe:6062
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    References listed on IDEAS

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    1. Jean-Pierre Ponssard, 1979. "Uncertainty in the demand function, Oligopolistic markets and the strategic role of information," Post-Print hal-00364248, HAL.
    2. Hurkens, Sjaak & Vulkan, Nir, 2001. "Information acquisition and entry," Journal of Economic Behavior & Organization, Elsevier, vol. 44(4), pages 467-479, April.
    3. Milgrom, Paul R, 1981. "Rational Expectations, Information Acquisition, and Competitive Bidding," Econometrica, Econometric Society, vol. 49(4), pages 921-943, June.
    4. Li, Lode & McKelvey, Richard D. & Page, Talbot, 1987. "Optimal research for cournot oligopolists," Journal of Economic Theory, Elsevier, vol. 42(1), pages 140-166, June.
    5. Gal-Or, Esther, 1985. "Information Sharing in Oligopoly," Econometrica, Econometric Society, vol. 53(2), pages 329-343, March.
    6. 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.
    7. 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 325-340, May.
    8. Daughety, Andrew F & Reinganum, Jennifer F, 1994. "Asymmetric Information Acquisition and Behavior in Role Choice Models: An Endogenously Generated Signaling Game," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 35(4), pages 795-819, November.
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    More about this item

    Keywords

    Information acquisition;

    JEL classification:

    • C72 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Noncooperative Games
    • D43 - Microeconomics - - Market Structure, Pricing, and Design - - - Oligopoly and Other Forms of Market Imperfection
    • D82 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Asymmetric and Private Information; Mechanism Design

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