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Quantity-setting games with a dominant firm

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  • Attila Tasnádi

Abstract

We consider a possible game-theoretic foundation of Forchheimer's model of dominant-firm price leadership based on quantity-setting games with one large firm and many small firms. If the large firm is the exogenously given first mover, we obtain Forchheimer's model. We also investigate whether the large firm can emerge as a first mover of a timing game.
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Suggested Citation

  • Attila Tasnádi, 2010. "Quantity-setting games with a dominant firm," Journal of Economics, Springer, vol. 99(3), pages 251-266, April.
    • Handle: RePEc:kap:jeczfn:v:99:y:2010:i:3:p:251-266
    DOI: 10.1007/s00712-010-0108-5
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    Cited by:

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    2. Federico Etro, 2010. "Endogenous market structures and antitrust policy," International Review of Economics, Springer;Happiness Economics and Interpersonal Relations (HEIRS), vol. 57(1), pages 9-45, March.
    3. Krešimir Žigić, 2012. "Stackelberg leadership with product differentiation and endogenous entry: some comparative static and limiting results," Journal of Economics, Springer, vol. 106(3), pages 221-232, July.
    4. Šrédl, K. & Mikhalkina, E., 2014. "Competition among Companies in the Fast Food Market in the Czech Republic," AGRIS on-line Papers in Economics and Informatics, Czech University of Life Sciences Prague, Faculty of Economics and Management, vol. 6(4), pages 1-14, December.
    5. Manel Antelo & Lluís Bru, 2024. "Intrapersonal price discrimination and welfare in a dominant firm model," Journal of Economics, Springer, vol. 141(2), pages 163-188, March.
    6. Lucie SEVEROVÁ & Lenka KOPECKÁ & Roman SVOBODA & Josef BRČÁK, 2011. "Oligopoly competition on market with food products," Agricultural Economics, Czech Academy of Agricultural Sciences, vol. 57(12), pages 580-588.

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    More about this item

    Keywords

    Forchheimer; Dominant firm; Price leadership; D43; L13;
    All these keywords.

    JEL classification:

    • L13 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Oligopoly and Other Imperfect Markets
    • D43 - Microeconomics - - Market Structure, Pricing, and Design - - - Oligopoly and Other Forms of Market Imperfection

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