IDEAS home Printed from https://ideas.repec.org/p/mtl/montde/8631.html
   My bibliography  Save this paper

Rational Rationing in Stackelerbg Equilibria

Author

Listed:
  • Boyer, M.
  • Moreaux, M.

Abstract

In the Contect of Duopoly Theory with Differentiated Products, Economic Theorists Usually Consider the Price As the Choice Variable for the Firms. Given the Prices, the Respective Quantities Demanded and Profits Can Be Computed. in This Paper, We Consider Strategy Spaces Consisting of Both Price and Production Variables. Two Models Are Developped: in One Model, the Firm Will Choose Its Price and the Number of Consumers It Will Serve (A Serving Capacity) While, in the Other Model, It Will Choose the Price and the Total Quantity It Will Produce (A Production Capacity). We Are Particularly Concerned in This Paper with the Existence of Endogenously-Determined Rationing in a Leader-Follower Duopoly Framework. We Show That Rationing Is Always (May Be) Present in Equilibrium When Strategies Are Expressed in Terms of the Price and the Production (Serving) Capacity. Moreover, Only the Leader Or First-Mover Will Or May Engage in Rationing. Rationing Appears Therefore As a Strategic Variable. What May Appear As a Fixed Price Equilibrium Or a Disequilibrium Turns Out in This Case to Be a Strategic Equilibrium with Completely Flexible Prices. an Example Is Worked Out.

Suggested Citation

  • Boyer, M. & Moreaux, M., 1986. "Rational Rationing in Stackelerbg Equilibria," Cahiers de recherche 8631, Universite de Montreal, Departement de sciences economiques.
  • Handle: RePEc:mtl:montde:8631
    as

    Download full text from publisher

    To our knowledge, this item is not available for download. To find whether it is available, there are three options:
    1. Check below whether another version of this item is available online.
    2. Check on the provider's web page whether it is in fact available.
    3. Perform a search for a similarly titled item that would be available.

    Other versions of this item:

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Emmanuel Dechenaux & Dan Kovenock, 2011. "Endogenous rationing, price dispersion and collusion in capacity constrained supergames," Economic Theory, Springer;Society for the Advancement of Economic Theory (SAET), vol. 47(1), pages 29-74, May.
    2. Boyer, Marcel & Lasserre, Pierre & Moreaux, Michel, 2012. "A dynamic duopoly investment game without commitment under uncertain market expansion," International Journal of Industrial Organization, Elsevier, vol. 30(6), pages 663-681.
    3. Boyer, Marcel & Moreaux, Michel, 1989. "Rationnement endogène et structure de marché," L'Actualité Economique, Société Canadienne de Science Economique, vol. 65(1), pages 119-145, mars.
    4. Marcel Boyer & Pierre Lasserre & Thomas Mariotti & Michel Moreaux, 2001. "Preemption and Rent Dissipation under Bertrand Competition," Cahiers de recherche du Département des sciences économiques, UQAM 20-04, Université du Québec à Montréal, Département des sciences économiques.
    5. Enrico Pennings, 2001. "Price or quantity setting under uncertain demand and capacity constraints: An examination of the profits," Journal of Economics, Springer, vol. 74(2), pages 157-171, June.
    6. Hyytinen, Ari & Väänänen, Lotta, 2004. "Could Mr. and Mrs. Capital Market Imperfection Please Step Forward? An Empirical Analysis of Adverse Selection and Moral Hazard in Capital Markets," Discussion Papers 887, The Research Institute of the Finnish Economy.
    7. Shakun Datta Mago & Emmanuel Dechenaux, 2009. "Price leadership and firm size asymmetry: an experimental analysis," Experimental Economics, Springer;Economic Science Association, vol. 12(3), pages 289-317, September.
    8. Marcel Boyer & Pierre Lasserre & Thomas Mariotti & Michel Moreaux, 2000. "Preemption and Rent Dissipation with Multiple Investments," CIRANO Working Papers 2000s-06, CIRANO.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:mtl:montde:8631. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Sharon BREWER) or (Joanne Lustig). General contact details of provider: http://edirc.repec.org/data/demtlca.html .

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.