Arbeitspapier
Time Consistency in Games of Timing
This paper tackles the issue of choosing roles in duopoly games. First, it is shown that the two necessary (and sufficient, if both satisfied) conditions for sequential play to emerge at equilibrium are that both leader and follower are at least weakly better off than under simultaneous play. Second, by means of a two-stage game of vertical differentiation, it is shown that if firms can commit to their respective timing decisions, there may exists a case where the leader is not necessarily better off than in the simultaneous equilibrium. Finally, in the absence of any commitment devices, it is proved that the timing choice can be time inconsistent if it is taken before firms proceed to play in both stages taking place in real time.
- Language
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Englisch
- Bibliographic citation
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Series: Quaderni - Working Paper DSE ; No. 302
- Classification
-
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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1997
- DOI
-
doi:10.6092/unibo/amsacta/5006
- Handle
- Last update
-
10.03.2025, 11:45 AM CET
Data provider
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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
- 1997
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Extended Games Played by Managerial Firms
Endogenous timing and the choice of quality in a vertically differentiated duopoly
Equilibrium Locations in the Unconstrained Hotelling Game
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The International Coordination of Monetary Policy: A Game-Theoretic Reformulation
On the Feedback Solution of a Differential Oligopoly Game with Hyperbolic Demand and Capacity Accumulation
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The issue of time inconsistency revisited as an extended game
On the Dynamic Consistency of Optimal Monetary Policy
Weak and Strong Time Consistency in Differential Oligopoly Games with Capital Accumulation
Degenerate Feedback and Time Consistency in Dynamic Games
On the Time Consistency of Equilibria in Additively Separable Differential Games
Extended Games Played by Managerial Firms
Endogenous timing and the choice of quality in a vertically differentiated duopoly
Equilibrium Locations in the Unconstrained Hotelling Game
Is America Unrivaled? A Repeated Game Analysis
The International Coordination of Monetary Policy: A Game-Theoretic Reformulation
On the Feedback Solution of a Differential Oligopoly Game with Hyperbolic Demand and Capacity Accumulation
Regulating the tragedy of commons: Nonlinear feedback solutions of a differential game with a dual interpretation
The issue of time inconsistency revisited as an extended game