Endogenous Choice of Strategic Variables in an Asymmetric Duopoly with Respect to the Demand Functions that Firms Face.

This paper examines endogenous choice of firm's strategic variables-i.e. price or quantity contract-in a duopoly in which the demand functions that they face are asymmetric in managerial delegation case with separation between ownership and management. We show that when the degree of asymmetry betwe...

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Published in:Manchester School (1463-6786) Vol. 83; no. 5; pp. 546 - 568
Main Author: Nakamura, Yasuhiko
Format: Article
Published: Wiley-Blackwell Sep2015
Subjects:
Online Access:View this record in EBSCOhost
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        10.1111/manc.12073
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        atl: Endogenous Choice of Strategic Variables in an Asymmetric Duopoly with Respect to the Demand Functions that Firms Face.
      aug:
        au: Nakamura, Yasuhiko
        affil: College of Economics, Nihon University
      su:
        Business enterprises
        Industrial organization (Economic theory)
        Duopolies
        Demand function
        Business planning
      sug:
        subj:
          Business enterprises
          Industrial organization (Economic theory)
          Duopolies
          Demand function
          Business planning
      ab: This paper examines endogenous choice of firm's strategic variables-i.e. price or quantity contract-in a duopoly in which the demand functions that they face are asymmetric in managerial delegation case with separation between ownership and management. We show that when the degree of asymmetry between the demand functions that the two firms face is low, price and quantity competitions are observed in the equilibrium, whereas when the degree of such asymmetry is high, the two types of market structures in which the strategic variables selected by the two owners are different from each other are observed in the equilibrium.
      pubtype: Academic Journal
      doctype: Article
      src: R
    language: English
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