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Endogenous Timing in a Mixed Oligopoly with Foreign Competitors

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  • Yuanzhu Lu

    (National University of Singapore)

Abstract

Endogenous order of moves in quantity choice is analyzed in a mixed oligopoly with one public firm, n domestic private firms and m foreign private firms. We consider the observable delay game of Hamilton and Slutsky (1990) in the context of a quantity setting mixed oligopoly where firms first choose the timing of choosing their quantities before quantity choice and find subgame perfect Nash equilibria (SPNE). The main results are that the public firm chooses to be a follower of all domestic private firms and not to be a leader of all foreign private firms, and that the number of SPNE depends on the number of domestic private firms and that of foreign private firms.

Suggested Citation

  • Yuanzhu Lu, 2005. "Endogenous Timing in a Mixed Oligopoly with Foreign Competitors," Industrial Organization 0508012, University Library of Munich, Germany.
    • Handle: RePEc:wpa:wuwpio:0508012
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    References listed on IDEAS

    as
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    More about this item

    Keywords

    Mixed Oligopoly; Endogenous Timing; Foreign Competitors; Public Firm; Private Firm; Simultaneous; Sequential;
    All these keywords.

    JEL classification:

    • L13 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Oligopoly and Other Imperfect Markets
    • 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
    • H42 - Public Economics - - Publicly Provided Goods - - - Publicly Provided Private Goods

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