Article ID | Journal | Published Year | Pages | File Type |
---|---|---|---|---|
7543774 | Operations Research Letters | 2018 | 6 Pages |
Abstract
We analyze endogenous acquisition of costly information for two firms that sell homogeneous products. Prior to determining its production quantity, either firm has an opportunity to acquire a costly forecast. There exists a correlation between errors in the acquired forecasts. We model the problem as a two-stage game in which the firms first decide whether to acquire their respective forecasts and then decide their production quantities. We derive the equilibrium outcome on information acquisition and production quantity.
Keywords
Related Topics
Physical Sciences and Engineering
Mathematics
Discrete Mathematics and Combinatorics
Authors
Qi Fu, Yongquan Li, Kaijie Zhu,