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The Relationship between Trigger Price and Punishment Period in Green and Porter (1984) Game made Endogenous

Author

Listed:
  • Jo

    (Faculdade de Economia, Universidade do Porto)

Abstract

Green and Porter (1984) made a huge contribution to Industrial Organization Theory where a trigger price is defined by firms and whenever the price falls below this trigger price, the firms cease to produce at the monopoly level and enter into a punishment period. Our goal with this paper is to define, endogenously in the model, relationships between the trigger price and the punishment period, which were set exogenously in the original paper.

Suggested Citation

  • Jo, 2012. "The Relationship between Trigger Price and Punishment Period in Green and Porter (1984) Game made Endogenous," FEP Working Papers 1001, Universidade do Porto, Faculdade de Economia do Porto.
    • Handle: RePEc:por:fepwps:1001
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    More about this item

    Keywords

    Green and Porter (1984); trigger price; punishment period;
    All these keywords.

    JEL classification:

    • L13 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Oligopoly and Other Imperfect Markets
    • L20 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - General

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