Arbeitspapier
Investigating the Strategic Nature of Supply Functions in Oligopoly
We show that supply functions cannot be classified as either strategic complements or substitutes according to the twofold criterion advanced by Bulow et al. (1985). This is because while the slope of the best reply is univocally positive, this is not the case with the sign of the cross derivative of marginal profit. We first show this discrepancy in the original Klemperer and Meyer (1989) setting, and then in a linear-quadratic model of differentiated duopoly. We further confirm and strengthen our result by proving that the game in supply functions is neither supermodular nor submodular.
- Language
-
Englisch
- Bibliographic citation
-
Series: Quaderni - Working Paper DSE ; No. 1011
- Classification
-
Wirtschaft
Market Structure, Pricing, and Design: Oligopoly and Other Forms of Market Imperfection
Oligopoly and Other Imperfect Markets
- Event
-
Geistige Schöpfung
- (who)
-
Delbono, Flavio
Lambertini, Luca
- Event
-
Veröffentlichung
- (who)
-
Alma Mater Studiorum - Università di Bologna, Dipartimento di Scienze Economiche (DSE)
- (where)
-
Bologna
- (when)
-
2015
- DOI
-
doi:10.6092/unibo/amsacta/4283
- Handle
- Last update
-
10.03.2025, 11:44 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
- Delbono, Flavio
- Lambertini, Luca
- Alma Mater Studiorum - Università di Bologna, Dipartimento di Scienze Economiche (DSE)
Time of origin
- 2015
Other Objects (12)
Oligopoly with Hyperbolic Demand and Capital Accumulation
Ranking Bertrand, Cournot and Supply Function Equilibria in Oligopoly
On the properties of linear supply functions in oligopoly
Managerial delegation in a dynamic renewable resource oligopoly
Dynamic Oligopoly à la Stackelberg with Stochastic Capital Accumulation
On the Interplay between Resource Extraction and Polluting Emissions in Oligopoly
Exploration for Nonrenewable Resources in a Dynamic Oligopoly: An Arrovian Result
The Contestability Paradigm in the Presence of Vertical Differentiation. Efficiency Evaluation of a Natural Oligopoly
On the Feedback Solution of a Differential Oligopoly Game with Hyperbolic Demand and Capacity Accumulation
Advertising in a Differential Oligopoly Game
Strategic Delegation and the Shape of Market Competition
Identifying Reaction Functions in Differential Oligopoly Games
Oligopoly with Hyperbolic Demand and Capital Accumulation
Ranking Bertrand, Cournot and Supply Function Equilibria in Oligopoly
On the properties of linear supply functions in oligopoly
Managerial delegation in a dynamic renewable resource oligopoly
Dynamic Oligopoly à la Stackelberg with Stochastic Capital Accumulation
On the Interplay between Resource Extraction and Polluting Emissions in Oligopoly
Exploration for Nonrenewable Resources in a Dynamic Oligopoly: An Arrovian Result
The Contestability Paradigm in the Presence of Vertical Differentiation. Efficiency Evaluation of a Natural Oligopoly
On the Feedback Solution of a Differential Oligopoly Game with Hyperbolic Demand and Capacity Accumulation
Advertising in a Differential Oligopoly Game
Strategic Delegation and the Shape of Market Competition
Identifying Reaction Functions in Differential Oligopoly Games
Oligopoly with Hyperbolic Demand and Capital Accumulation
Ranking Bertrand, Cournot and Supply Function Equilibria in Oligopoly
On the properties of linear supply functions in oligopoly
Managerial delegation in a dynamic renewable resource oligopoly
Dynamic Oligopoly à la Stackelberg with Stochastic Capital Accumulation
On the Interplay between Resource Extraction and Polluting Emissions in Oligopoly
Exploration for Nonrenewable Resources in a Dynamic Oligopoly: An Arrovian Result
The Contestability Paradigm in the Presence of Vertical Differentiation. Efficiency Evaluation of a Natural Oligopoly
On the Feedback Solution of a Differential Oligopoly Game with Hyperbolic Demand and Capacity Accumulation
Advertising in a Differential Oligopoly Game
Strategic Delegation and the Shape of Market Competition