EconPapers    
Economics at your fingertips  
 

A Dynamic Duopoly Model with Asymmetric Information

Ramon Caminal ()

Journal of Industrial Economics, 1990, vol. 38, issue 3, 315-33

Abstract: This paper investigates the impact of asymmetric information on the set of equilibria of a two-period duopoly game with price competition. It turns out that all admissible sequential equilibria of this game share a "collusive" character, i.e., ex ante expected profits for a firm of any type are higher than in the complete information case. For small uncertainties, the results are asymmetric: a small probability of a "good" type firm does not make much difference on the set of equilibrium payoffs, but a small probability of a "bad" type firm does. These results survive the introduction of Kohlberg and Martens' (1986) stability concept. Copyright 1990 by Blackwell Publishing Ltd.

Date: 1990
References: Add references at CitEc
Citations: View citations in EconPapers (10) Track citations by RSS feed

Downloads: (external link)
http://links.jstor.org/sici?sici=0022-1821%2819900 ... 0.CO%3B2-W&origin=bc full text (application/pdf)
Access to full text is restricted to JSTOR subscribers. See http://www.jstor.org for details.

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:bla:jindec:v:38:y:1990:i:3:p:315-33

Ordering information: This journal article can be ordered from
http://www.blackwell ... bs.asp?ref=0022-1821

Access Statistics for this article

Journal of Industrial Economics is currently edited by Pierre Regibeau, Yeon-Koo Che, Kenneth Corts, Thomas Hubbard, Patrick Legros and Frank Verboven

More articles in Journal of Industrial Economics from Wiley Blackwell
Bibliographic data for series maintained by Wiley Content Delivery ().

 
Page updated 2021-10-13
Handle: RePEc:bla:jindec:v:38:y:1990:i:3:p:315-33