Title :
Quantity Competition under Demand Slope Uncertainty
Author :
Xu, Jin ; Wang, Jianmin
Author_Institution :
Sch. of Math., Shandong Univ., Jinan, China
Abstract :
Consider a model where firms own the same technology in linear Cournot duopolies with differentiated products and the slope of the demand curve facing the firm is unknown, especially which contains own-price effect and cross-effect. We discuss as follows: whether there is an incentive to share information when firms are symmetrically informed about the random demand. In a two-stage game, on the one hand, it is a Nash equilibrium for the competitors to share their information for relatively perfect substitutes, and sufficiently large variation in the demand slope, or for relatively poor substitutes, not depending on the precision of the information and the variation of the demand slope.
Keywords :
game theory; supply and demand; Nash equilibrium; cross-effect; demand curve; demand slope uncertainty; differentiated products; linear Cournot duopolies; own-price effect; quantity competition; random demand; two-stage game; Bayesian methods; Games; Industries; Mathematical model; Nash equilibrium; Polynomials; Uncertainty; Nash equilibrium; demand slope; information; quantity competition; uncertainty;
Conference_Titel :
E-Business and E-Government (ICEE), 2010 International Conference on
Conference_Location :
Guangzhou
Print_ISBN :
978-0-7695-3997-3
DOI :
10.1109/ICEE.2010.1308