Endogenous timing in a mixed oligopoly consisting of a single public firm and foreign competitors

We investigate endogenous timing in a mixed oligopoly consisting of a single public firm and foreign competitors and compare the results with those in Pal (1998) to see the effect of the nationality of private firms on the endogenous role of the public firm. We find that the results are the same in two cases: (i) there are only two time periods for quantity choice, and (ii) there are more than two time periods for quantity choice and there are more than two private firms but quite different when there are more than two time periods for quantity choice and there are only one or two private firms.Endogenous timing

Endogenous Timing in a Mixed Oligopoly with Foreign Competitors

Endogenous order of moves in quantity choice is analyzed in a mixed oligopoly with one public firm, n domestic private firms and m foreign private firms. We consider the observable delay game of Hamilton and Slutsky (1990) in the context of a quantity setting mixed oligopoly where firms first choose the timing of choosing their quantities before quantity choice and find subgame perfect Nash equilibria (SPNE). The main results are that the public firm chooses to be a follower of all domestic private firms and not to be a leader of all foreign private firms, and that the number of SPNE depends on the number of domestic private firms and that of foreign private firms.Mixed Oligopoly; Endogenous Timing; Foreign Competitors; Public Firm; Private Firm, Simultaneous, Sequential

Hotelling¡¯s Location Model in Mixed Duopoly

We investigate a mixed duopoly market where a welfare-maximizing public firm competes against a profit-maximizing private firm, using a linear-city location-then-price model with linear transportation costs. We find that, compared with the results in the purely private duopoly case discussed by Hotelling (1929) and d' Aspremont, Gabszewicz, and Thisse (1979), the condition under which price equilibrium exists for every location of private firm and public firm is changed while the main result of no subgame perfect Nash equilibrium (SPNE) for the game still holds true.

Endogenous Timing in a Mixed Oligopoly with Foreign Competitors: the Linear Demand Case

We introduce foreign private firms into the model of Pal (1998) and investigate the impact of the introduction of foreign private firms on the endogenous timing in a mixed oligopoly in the linear demand case.We find that the public firm chooses to be a follower of all domestic private firms and that the public firm chooses not to be a leader of all foreign private firms, which is in contrast to Matsumura (2003).mixed oligopoly, endogenous timing, foreign competitors

The Choice of Capacity in Mixed Duopoly under Demand Uncertainty

We analyze the capacity choice of firms under demand uncertainty in a mixed duopoly market consisting of one private firm and one public firm. We define a two-stage game where firms choose capacity in the first stage without knowing which state of Nature is going to be realized, and output in the second stage knowing which state is realized. We address the question of maintaining over and under capacity in the equilibrium as a strategic device; and show that both symmetric and asymmetric outcomes can be realized.

Accommodation or Deterrence in the Face of Commercial Piracy: the Impact of Intellectual Property Rights (IPR) Protection

In this paper, we address the issue of illegal copying or counterfeiting of the original product and Intellectual Property Rights (IPR) protections. The original product developer makes costly investment to deter piracy in a given regime of IPR protection. In the presence of a commercial pirate, we find that it is profitable for the original producer to accommodate the pirate when there is weak IPR protection, and deter when the IPR protection is strong. However, in the comparative statics analysis, we find that there is a non-monotonic relationship between the optimal level of deterrence (chosen by the original producer) and the degree of IPR protection in the economy. The relationship between the rate of piracy and IPR protection is found to be monotonically decreasing whereas the relationship between the rate of piracy and the quality of the pirated product turns out to be non-monotonic. On the other side, from the commercial pirate¡¯s point of view, the most profitable way to survive in the market is to produce a pirated product of moderate quality. Our model also provided a possible explanation of varying piracy rates across countries/regions.Piracy, Copyright violations, Raising rival¡¯s cost, Deterrence, Accommodation, Product quality

Endogenous Timing in a Mixed Duopoly and Private Duopoly - ‘Capacity- then-Quantity’ Game

We consider a game of endogenous timing of sequential choice of capacity and quantity with observable delay in a mixed duopoly and a private duopoly under two possible time structures. In mixed duopoly, we find that a simultaneous play at the capacity stage or at the quantity stage can never be supported as subgame perfect Nash equilibrium (SPNE); whereas a simultaneous play at each stage turns out to be the unique SPNE in a private duopoly. In mixed duopoly there is multiplicity of equilibria and all SPNEs require sequentiality at the capacity as well as quantity stage. These equilibrium outcomes are invariant with respect to the endogenous time structures. In this context, we also show that the public firm never chooses over (excess) capacity in mixed duopoly, while the private firm never chooses under capacity in both mixed and private duopoly.Endogenous timing, public firm, private firm, over capacity, under capacity

Mixed oligopoly and the choice of capacity

We analyze the capacity choice of firms under different time structures in a mixed oligopoly market, in which firms decide not only production quantities but also capacity scales. We show that the public firm never chooses excess capacity, while the private firm never chooses under capacity under all possible strategic environments.Public firm, Private firm, Excess capacity, Under capacity

Endogenous Timing in a Mixed Duopoly with Endogenous Vertical Differentiation

We consider a game of endogenous timing with observable delay in a mixed duopoly with endogenous vertical differentiation in the context of sequential quality and price choice. We find that a simultaneous play in the first opportunity at each stage turns out to be the unique subgame perfect Nash equilibrium, which contrasts with the endogenous timing in a purely private duopoly.Endogenous timing, public firm, private firm, vertical differentiation

A Note on Endogenous Timing with Strategic Delegation: Unilateral Externality Case

We investigated the endogenous choice of roles by managerial firms in the presence of unilateral externality. The choice over timing can be taken either by managers or by owners. It is shown that (i) the choice of the timing by managers entails the same profit that owners would have achieved by specifying the timing in the delegation contract; and (ii) firms move simultaneously if the degree of unilateral externality is small, while sequentially if the degree of unilateral externality is large, with the firm generating unilateral externality as a follower; the owner of the follower firm delegates to restrict output, while his/her counterpart does not delegate it.Managerial Delegation, Externality, Stackelberg, Endogenous Timing