Article ID Journal Published Year Pages File Type
5078474 International Journal of Industrial Organization 2006 9 Pages PDF
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.

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Social Sciences and Humanities Economics, Econometrics and Finance Economics and Econometrics
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