Cost raising strategies in a symmetric, dynamic duopoly
Cost raising strategies in a symmetric, dynamic duopoly
This paper provides a characterisation of the set of dynamic models in which symmetric duopolists have incentives to raise their common cost. The dynamic analysis has two advantages over existing static models. First, it avoids conceptual weaknesses, allowing conjectures to be derived endogenously rather than imposed. Secondly, it extends the conditions (restrictive in static models) under which symmetric cost raising is profitable. The model is illustrated by standard examples from industrial organisation (quantity and price adjustment, and learning-by-doing).
University of Southampton
Mason, R.
1a906445-3ab5-4208-a0fc-4df6e51a2b72
January 1999
Mason, R.
1a906445-3ab5-4208-a0fc-4df6e51a2b72
Mason, R.
(1999)
Cost raising strategies in a symmetric, dynamic duopoly
(Discussion Papers in Economics and Econometrics, 9908)
Southampton, UK.
University of Southampton
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Monograph
(Discussion Paper)
Abstract
This paper provides a characterisation of the set of dynamic models in which symmetric duopolists have incentives to raise their common cost. The dynamic analysis has two advantages over existing static models. First, it avoids conceptual weaknesses, allowing conjectures to be derived endogenously rather than imposed. Secondly, it extends the conditions (restrictive in static models) under which symmetric cost raising is profitable. The model is illustrated by standard examples from industrial organisation (quantity and price adjustment, and learning-by-doing).
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Published date: January 1999
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Local EPrints ID: 33143
URI: http://eprints.soton.ac.uk/id/eprint/33143
PURE UUID: 4bbb7e5b-960e-4fd4-baf8-3ebba16db776
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Date deposited: 20 Dec 2007
Last modified: 11 Dec 2021 15:19
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R. Mason
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