Endogenous Timing in a Price-Setting Mixed Duopoly with a Foreign Competitor

Ohnishi, Kazuhiro

Document Type : Original Research

Author

Kazuhiro Ohnishi

Institute for Basic Economic Science, Osaka, Japan

Abstract

This paper considers mixed duopoly games where a state-owned public firm and a foreign private firm compete in price. The public firm aims to maximize the un-weighted sum of consumer surplus and its own profit. The paper examines a desirable role (either leader or follower) of the public firm, an effect of eliminating the foreign firm and an endogenous role in price-setting mixed duopoly by adopting the observable delay game. Consequently, the paper shows that the unique equilibrium of price-setting international mixed competition is quite different from that of quantity-setting international mixed competition.

Keywords

20.1001.1.23832126.2016.3.12.1.7

References

Bárcena-Ruiz, J. C. (2007). Endogenous timing in a mixed duopoly: price competition. Journal of Economics, 91, 263-272.

Barcena-Ruiz, J. C., & Garzón, M. B. (2007). Capacity choice in a mixed duopoly under price competition. Economics Bulletin, 12, 1-7.

Bárcena-Ruiz, J. C., & Sedano, M. (2011). Endogenous timing in a mixed duopoly: Weighted welfare and price competition. Japanese Economic Review, 62, 485-503.

Hamilton, J. H., & Slutsky, S. M. (1990). Endogenous timing in duopoly games: Stackelberg or Cournot equilibria. Games and Economic Behavior, 2, 29-46.

Merrill, W., & Schneider, N. (1966). Government firms in oligopoly industries: A short-run analysis. Quarterly Journal of Economics, 80, 400-412.

Matsumura, T. (2003). Stackelberg mixed duopoly with a foreign competitor. Bulletin of Economic Research, 55, 275-287.

Ohnishi, K. (2010). Domestic and international mixed models with price competition. International Review of Economics, 57, 1-7.

Ohnishi, K. (2015). Quantity precommitment and mixed duopoly with price competition. In: Ohnishi, K. (Ed.), Firms’ Strategic Decisions: Theoretical and Empirical Findings, volume 1 (pp. 182-194). Sharjah, UAE: Bentham Science Publishers.

Ohnishi, K. (2015). Price-setting games and entry deterrence. In: Ohnishi, K. (Ed.), Firms’ Strategic Decisions: Theoretical and Empirical Findings, Volume 2 (pp. 142-161). Sharjah, UAE: Bentham Science Publishers.

Singh, N., & Vives, X. (1984). Price and quantity competition in a differentiated duopoly. Rand Journal of Economics, 15, 546-554.

International Journal of Management, Accounting and Economics

Endogenous Timing in a Price-Setting Mixed Duopoly with a Foreign Competitor

References

References

Volume 3, Issue 12 - Serial Number 29
December 2016
Pages 758-763

Endogenous Timing in a Price-Setting Mixed Duopoly with a Foreign Competitor

References

References

Volume 3, Issue 12 - Serial Number 29December 2016Pages 758-763

Volume 3, Issue 12 - Serial Number 29
December 2016
Pages 758-763