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Information disadvantage in linear Cournot duopolies with differentiated products
- Source :
- International Journal of Industrial Organization. 24:785-793
- Publication Year :
- 2006
- Publisher :
- Elsevier BV, 2006.
-
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.
Details
- ISSN :
- 01677187
- Volume :
- 24
- Database :
- OpenAIRE
- Journal :
- International Journal of Industrial Organization
- Accession number :
- edsair.doi...........4c0236d5642f3d576fe3bc7fd65ebd34
- Full Text :
- https://doi.org/10.1016/j.ijindorg.2005.09.009