Commitment for storable good duopoly

✍ Scribed by Pu-yan Nie

• Book ID: 103864455
• Publisher: Elsevier Science
• Year: 2009
• Tongue: English
• Weight: 418 KB
• Volume: 10
• Category: Article
• ISSN: 1468-1218
• DOI: 10.1016/j.nonrwa.2008.02.019

✦ Synopsis

Commitment plays exceedingly important roles in industrial organization theory and there exists extensive research on the commitment. In this paper, we extend commitment for storable goods to duopoly structure. Based on the discrete-time dynamic models, commitment is compared with non-commitment under duopoly and the corresponding results are obtained. Namely, the prices under commitment are lower than that without commitment under duopoly and the social welfare is improved under commitment.