Arbeitspapier
Cournot Vs Stackelberg Equilibria With Entrepreneurial and Labour Managed Firms
The issue of equilibrium selection in a duopoly game between a profit maximizing and a labour managed firm is addressed under either price or quantity competition with product differentiation. If firms can choose the timing of moves before competing in the relevant market variable, the Bertrand game yields multiple equilibria, while the Cournot game has a unique subgame perfect equilibrium with the profit maximizing firm in the leader's role and the labour managed firm in the follower's role. Due to a lower total output, the Cournot-Stackelberg equilibrium yields a lower level of social welfare as compared to the simultaneous equilibrium. This reduces the incentive to transform an LM duopoly into a mixed one.
- Language
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Englisch
- Bibliographic citation
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Series: Quaderni - Working Paper DSE ; No. 217
- Classification
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Wirtschaft
- Event
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Geistige Schöpfung
- (who)
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Lambertini, Luca
- Event
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Veröffentlichung
- (who)
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Alma Mater Studiorum - Università di Bologna, Dipartimento di Scienze Economiche (DSE)
- (where)
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Bologna
- (when)
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1995
- DOI
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doi:10.6092/unibo/amsacta/5108
- Handle
- Last update
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10.03.2025, 11:42 AM CET
Data provider
This object is provided by:
ZBW - Deutsche Zentralbibliothek für Wirtschaftswissenschaften - Leibniz-Informationszentrum Wirtschaft. If you have any questions about the object, please contact the data provider.
ZBW - Deutsche Zentralbibliothek für Wirtschaftswissenschaften - Leibniz-Informationszentrum Wirtschaft. If you have any questions about the object, please contact the data provider.
Object type
- Arbeitspapier
Associated
- Lambertini, Luca
- Alma Mater Studiorum - Università di Bologna, Dipartimento di Scienze Economiche (DSE)
Time of origin
- 1995
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Minimum Quality Standard Under Cournot Competition and Pollution
Cournot Retrouvé under Price or Supply Function Competition
Efficient Horizontal Mergers in Polluting Industries with Cournot Competition
On Globally Optimal Punishments in the Repeated Cournot Game
Stackelberg equilibria and horizontal differentiation
Ranking Bertrand, Cournot and Supply Function Equilibria in Oligopoly
Cartel Stability Under Vertical Differentiation and Convex costs: Bertrand vs Cournot
Dynamic Oligopoly à la Stackelberg with Stochastic Capital Accumulation
Stackelberg Leadership in a Dynamic Duopoly with Capital Accumulation
Sequential Vs Simultaneous Equilibria in A Differentiated Duopoly
Process Innovation and the Persistence of Monopoly with Labour-Managed Firms
Bertrand versus Cournot with Convex Variable Costs
Minimum Quality Standard Under Cournot Competition and Pollution
Cournot Retrouvé under Price or Supply Function Competition
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