nep-ind New Economics Papers
on Industrial Organization
Issue of 2005‒07‒11
three papers chosen by
Kwang Soo Cheong
Johns Hopkins University

  1. A Closer Look at the Comparative Statics in Competitive Markets By José Ramón Ruiz-Tamarit; Manuel Sánchez-Moreno
  2. Non Cooperatives Stackelberg Networks By Juan M.C. Larrosa
  3. Endogenous timing in duopoly: experimental evidence By Fonseca,Miguel A.; Mueller,Wieland; Normann,Hans-Theo

  1. By: José Ramón Ruiz-Tamarit; Manuel Sánchez-Moreno
    Abstract: In this paper we revisit the dual approach to comparative statics in competitive markets, allowing for the essential results to arise from a comprehensive and unified framework. We study, for both the long-run and the short-run, the response of all the endogenous variables to price factor changes in a way that captures the outputprice effects arising from market-firm interactions. We show that it is necessary a richer characterization of the nature of factors with respect to output, connected with marginal cost and output demand elasticities, for completely determining such responses.
  2. By: Juan M.C. Larrosa (CONICET-Universidad Nacional del Sur)
    Abstract: Noncooperative network-formation games in oligopolies analyze optimal connection structures that emerge when linking represent the appropriation of cost-reducing one-way externalities. These models reflect situations where one firm access to another firm’s (public or private) information and this last cannot refuse it. What would happen if decisions are sequential? A model of exogenous Stackelberg leadership is developed and first-mover advantages are observed and commented.
    Keywords: non cooperative games, network formation strategies, Stackelberg equilibrium.
    JEL: C70 D43 L13
    Date: 2005–07–08
  3. By: Fonseca,Miguel A.; Mueller,Wieland; Normann,Hans-Theo (Tilburg University, Center for Economic Research)
    Abstract: In this paper we experimentally investigate the extended game with observable delay of Hamilton and Slutsky (Games Econ. Beh., 1990). Firms bindingly announce a production period (one out of two periods) and then they produce in the announced sequence. Theory predicts simultaneous production in period one but we find that a substantial proportion of subjects choose the second period.
    JEL: C72 C92 D43
    Date: 2005

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