Article ID | Journal | Published Year | Pages | File Type |
---|---|---|---|---|
5078474 | International Journal of Industrial Organization | 2006 | 9 Pages |
Abstract
We focus on a class of linear Cournot duopolies with differentiated products and prove that whether there is an information advantage or disadvantage depends on firms' information setup. Specifically, we show that when the cross-effects are common value, the uninformed firm that commits to quantity will not have lower ex ante profits than a firm that has complete information about its cross-effects. This result contrasts to the information advantage that holds in the same duopolies with independent cross-effects.
Related Topics
Social Sciences and Humanities
Economics, Econometrics and Finance
Economics and Econometrics
Authors
Adi Chokler, Shlomit Hon-Snir, Moshe Kim, Benyamin Shitovitz,