Pre‐emptive production and market competitiveness in oligopoly with private information

B-Tier
Journal: Journal of Economics & Management Strategy
Year: 2021
Volume: 30
Issue: 2
Pages: 449-455

Authors (3)

Yuki Amemiya (not in RePEc) Akifumi Ishihara (University of Tokyo) Tomoya Nakamura (not in RePEc)

Score contribution per author:

0.670 = (α=2.01 / 3 authors) × 1.0x B-tier

α: calibrated so average coauthorship-adjusted count equals average raw count

Abstract

We investigate a firm's pre‐emptive behavior by comparing Cournot competition and Stackelberg games with one leader and multiple followers, where each firm has access to private information on stochastic demand. We show that the firm prefers pre‐emptive quantity choice (Stackelberg leader) to simultaneous quantity choice (Cournot firm) if and only if the firm is ignorant of the market size compared to the other firm. The firm's decision in terms of production timing is always detrimental to producer surplus in the industry. It is beneficial to consumer surplus in duopoly competition, but detrimental when there are many competitors in the market.

Technical Details

RePEc Handle
repec:bla:jemstr:v:30:y:2021:i:2:p:449-455
Journal Field
Industrial Organization
Author Count
3
Added to Database
2026-01-25