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Information exchange in a Cournot duopoly with nonlinear demand function

Author

Listed:
  • Fabio Tramontana

    (Department of Economics and Management, University of Pavia)

Abstract

We study information sharing in a Cournot duopoly with isoelastic demand function, when the elasticity is uncertain. This is one of the first attempts to analyze the role of nonlinearity in such a framework. We found important results about the profitability of sharing informations when marginal costs are high and/or the variance between elasticity values is low. From the point of view of welfare considerations, not sharing information seems to be the best scenario.

Suggested Citation

  • Fabio Tramontana, 2013. "Information exchange in a Cournot duopoly with nonlinear demand function," DEM Working Papers Series 049, University of Pavia, Department of Economics and Management.
    • Handle: RePEc:pav:demwpp:demwp0049
    as

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    File URL: http://dem-web.unipv.it/web/docs/dipeco/quad/ps/RePEc/pav/demwpp/DEMWP0049.pdf
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    References listed on IDEAS

    as
    1. Malueg, David A. & Tsutsui, Shunichi O., 1996. "Duopoly information exchange: The case of unknown slope," International Journal of Industrial Organization, Elsevier, vol. 14(1), pages 119-136.
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    Full references (including those not matched with items on IDEAS)

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    Keywords

    Information exchange; Cournot duopoly; Hyperbolic demand;
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