Duopolistic competition with multiple scenarios and different attitudes toward uncertainty

In this paper, we address duopolistic competition when the firms have to assess the results of the interaction at different scenarios. Specifically, we consider the case in which the scenarios are identified with several states of nature and, therefore, the firms face uncertainty on their results. The p...

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Detalles Bibliográficos
Autores: Monroy Berjillos, Luisa, Caraballo, M. Ángeles, Mármol Conde, Amparo María
Tipo de recurso: artículo
Estado:Versión aceptada para publicación
Fecha de publicación:2018
País:España
Institución:Universidad de Sevilla (US)
Repositorio:idUS. Depósito de Investigación de la Universidad de Sevilla
OAI Identifier:oai:idus.us.es:11441/70980
Acceso en línea:https://hdl.handle.net/11441/70980
https://doi.org/10.1111/itor.12474
Access Level:acceso abierto
Palabra clave:Game theory
Multiscenario games
Cournot duopoly
Equilibria
Descripción
Sumario:In this paper, we address duopolistic competition when the firms have to assess the results of the interaction at different scenarios. Specifically, we consider the case in which the scenarios are identified with several states of nature and, therefore, the firms face uncertainty on their results. The probability of occurrence of the scenarios is unknown by the firms and they make their output decision before uncertainty is resolved. Within this framework, we analyze competition between firms when these firms exhibit extreme and neutral attitudes toward uncertainty with respect to the final profits. For the variety of cases that can occur, we characterize the sets of equilibria, and provide procedures to determine them. The analysis proposed can also be applied to study situations in a deterministic setting with simultaneous multiple scenarios, and to the analysis of multiple criteria duopolistic competition