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

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  • Yasuhiko Nakamura

Abstract

type="main"> 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.

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  • Yasuhiko Nakamura, 2015. "Endogenous Choice of Strategic Variables in an Asymmetric Duopoly with Respect to the Demand Functions that Firms Face," Manchester School, University of Manchester, vol. 83(5), pages 546-567, September.
    • Handle: RePEc:bla:manchs:v:83:y:2015:i:5:p:546-567
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    Cited by:

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    2. Yasuhiko Nakamura, 2017. "Choosing Price or Quantity? The Role of Delegation and Network Externalities in a Mixed Duopoly," Australian Economic Papers, Wiley Blackwell, vol. 56(2), pages 174-200, June.
    3. Yasuhiko Nakamura, 2022. "Endogenous Determination of Strategies in a Kantian Duopoly," Journal of Industry, Competition and Trade, Springer, vol. 22(3), pages 519-533, December.
    4. Yasuhiko Nakamura, 2017. "Price Versus Quantity in a Duopoly with a Unilateral Effect and with Bargaining over Managerial Contracts," Journal of Industry, Competition and Trade, Springer, vol. 17(1), pages 83-119, March.
    5. Yasuhiko Nakamura, 2021. "Price versus quantity in a duopoly with network externalities under active and passive expectations," Managerial and Decision Economics, John Wiley & Sons, Ltd., vol. 42(1), pages 120-133, January.
    6. Yasuhiko Nakamura, 2022. "Corporate social responsibility focusing on consumer surplus and endogenous competition structure: A case of managerial delegation," Managerial and Decision Economics, John Wiley & Sons, Ltd., vol. 43(7), pages 3000-3018, October.
    7. Yasuhiko Nakamura, 2017. "Endogenous market structures in a mixed oligopoly with a public firm whose managerial contract is based on welfare and bargaining over the managerial contract of a private firm," Economia Politica: Journal of Analytical and Institutional Economics, Springer;Fondazione Edison, vol. 34(2), pages 189-209, August.

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