Please use this identifier to cite or link to this item: https://hdl.handle.net/10216/96367
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dc.creatorFernanda A. Ferreira
dc.creatorFlávio Ferreira
dc.creatorAlberto A. Pinto
dc.date.accessioned2019-02-07T10:53:01Z-
dc.date.available2019-02-07T10:53:01Z-
dc.date.issued2007
dc.identifier.othersigarra:48431
dc.identifier.urihttps://repositorio-aberto.up.pt/handle/10216/96367-
dc.descriptionWe consider a duopoly model with unknown costs. The firms' aims are to maximize their profits by choosing the levels of their outputs. The chooses are made simultaneously by both firms. In this paper, we suppose that each firm has two different technologies, and uses one of them following a probability distribution. The utilization of one or the other technology affects the unitary production cost. We show that this game has exactly one Bayesian Nash equilibrium. We analyze the advantages, for firms and for consumers, of using the technology with highest production cost versus the one with cheapest production cost. We also analyze the expected total quantity produced in each situation, which is of particular importance in the case that scanty natural resources are used in the production.
dc.description.abstractWe consider a duopoly model with unknown costs. The firms' aims are to maximize their profits by choosing the levels of their outputs. The chooses are made simultaneously by both firms. In this paper, we suppose that each firm has two different technologies, and uses one of them following a probability distribution. The utilization of one or the other technology affects the unitary production cost. We show that this game has exactly one Bayesian Nash equilibrium. We analyze the advantages, for firms and for consumers, of using the technology with highest production cost versus the one with cheapest production cost. We also analyze the expected total quantity produced in each situation, which is of particular importance in the case that scanty natural resources are used in the production.
dc.language.isoeng
dc.relation.ispartofMathematical Methods in Engineering. Springer.
dc.rightsrestrictedAccess
dc.subjectMatemática
dc.subjectMathematics
dc.titleUnknown costs in a duopoly with differentiated products
dc.typeCapítulo ou Parte de Livro
dc.contributor.uportoFaculdade de Ciências
dc.subject.fosCiências exactas e naturais::Matemática
dc.subject.fosNatural sciences::Mathematics
Appears in Collections:FCUP - Capítulo ou Parte de Livro

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