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Information disadvantage in linear Cournot duopolies with differentiated products

Authors :
Benyamin Shitovitz
Shlomit Hon-Snir
Adi Chokler
Moshe Kim
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