Price competition in the Hotelling model with uncertainty on costs
Autor(a) principal: | |
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Data de Publicação: | 2015 |
Outros Autores: | |
Tipo de documento: | Artigo |
Idioma: | eng |
Título da fonte: | Repositório Científico de Acesso Aberto de Portugal (Repositórios Cientìficos) |
Texto Completo: | http://repositorio.inesctec.pt/handle/123456789/6134 http://dx.doi.org/10.1080/02331934.2014.917304 |
Resumo: | For the linear Hotelling model with firms located at the boundaries of the segment line, we study the price competition in a scenario of incomplete information in the production costs of both firms. We introduce the bounded uncertain costs (BUC) condition in the production costs and we prove that there is a local optimum price strategy if and only if the BUC condition holds. We compute explicitly the local optimum price strategy and we prove that it does not depend upon the distributions of the production costs of the firms, except on their first moments. We prove that the ex-post profit of a firm is smaller than its ex-ante profit if and only if the production cost of the other firm is greater than its expected cost. |
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Repositório Científico de Acesso Aberto de Portugal (Repositórios Cientìficos) |
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Price competition in the Hotelling model with uncertainty on costsFor the linear Hotelling model with firms located at the boundaries of the segment line, we study the price competition in a scenario of incomplete information in the production costs of both firms. We introduce the bounded uncertain costs (BUC) condition in the production costs and we prove that there is a local optimum price strategy if and only if the BUC condition holds. We compute explicitly the local optimum price strategy and we prove that it does not depend upon the distributions of the production costs of the firms, except on their first moments. We prove that the ex-post profit of a firm is smaller than its ex-ante profit if and only if the production cost of the other firm is greater than its expected cost.2018-01-15T12:37:35Z2015-01-01T00:00:00Z2015info:eu-repo/semantics/publishedVersioninfo:eu-repo/semantics/articleapplication/pdfhttp://repositorio.inesctec.pt/handle/123456789/6134http://dx.doi.org/10.1080/02331934.2014.917304engAlberto PintoTelmo Parreirainfo:eu-repo/semantics/openAccessreponame:Repositório Científico de Acesso Aberto de Portugal (Repositórios Cientìficos)instname:Agência para a Sociedade do Conhecimento (UMIC) - FCT - Sociedade da Informaçãoinstacron:RCAAP2023-05-15T10:19:52Zoai:repositorio.inesctec.pt:123456789/6134Portal AgregadorONGhttps://www.rcaap.pt/oai/openaireopendoar:71602024-03-19T17:52:21.772175Repositório Científico de Acesso Aberto de Portugal (Repositórios Cientìficos) - Agência para a Sociedade do Conhecimento (UMIC) - FCT - Sociedade da Informaçãofalse |
dc.title.none.fl_str_mv |
Price competition in the Hotelling model with uncertainty on costs |
title |
Price competition in the Hotelling model with uncertainty on costs |
spellingShingle |
Price competition in the Hotelling model with uncertainty on costs Alberto Pinto |
title_short |
Price competition in the Hotelling model with uncertainty on costs |
title_full |
Price competition in the Hotelling model with uncertainty on costs |
title_fullStr |
Price competition in the Hotelling model with uncertainty on costs |
title_full_unstemmed |
Price competition in the Hotelling model with uncertainty on costs |
title_sort |
Price competition in the Hotelling model with uncertainty on costs |
author |
Alberto Pinto |
author_facet |
Alberto Pinto Telmo Parreira |
author_role |
author |
author2 |
Telmo Parreira |
author2_role |
author |
dc.contributor.author.fl_str_mv |
Alberto Pinto Telmo Parreira |
description |
For the linear Hotelling model with firms located at the boundaries of the segment line, we study the price competition in a scenario of incomplete information in the production costs of both firms. We introduce the bounded uncertain costs (BUC) condition in the production costs and we prove that there is a local optimum price strategy if and only if the BUC condition holds. We compute explicitly the local optimum price strategy and we prove that it does not depend upon the distributions of the production costs of the firms, except on their first moments. We prove that the ex-post profit of a firm is smaller than its ex-ante profit if and only if the production cost of the other firm is greater than its expected cost. |
publishDate |
2015 |
dc.date.none.fl_str_mv |
2015-01-01T00:00:00Z 2015 2018-01-15T12:37:35Z |
dc.type.status.fl_str_mv |
info:eu-repo/semantics/publishedVersion |
dc.type.driver.fl_str_mv |
info:eu-repo/semantics/article |
format |
article |
status_str |
publishedVersion |
dc.identifier.uri.fl_str_mv |
http://repositorio.inesctec.pt/handle/123456789/6134 http://dx.doi.org/10.1080/02331934.2014.917304 |
url |
http://repositorio.inesctec.pt/handle/123456789/6134 http://dx.doi.org/10.1080/02331934.2014.917304 |
dc.language.iso.fl_str_mv |
eng |
language |
eng |
dc.rights.driver.fl_str_mv |
info:eu-repo/semantics/openAccess |
eu_rights_str_mv |
openAccess |
dc.format.none.fl_str_mv |
application/pdf |
dc.source.none.fl_str_mv |
reponame:Repositório Científico de Acesso Aberto de Portugal (Repositórios Cientìficos) instname:Agência para a Sociedade do Conhecimento (UMIC) - FCT - Sociedade da Informação instacron:RCAAP |
instname_str |
Agência para a Sociedade do Conhecimento (UMIC) - FCT - Sociedade da Informação |
instacron_str |
RCAAP |
institution |
RCAAP |
reponame_str |
Repositório Científico de Acesso Aberto de Portugal (Repositórios Cientìficos) |
collection |
Repositório Científico de Acesso Aberto de Portugal (Repositórios Cientìficos) |
repository.name.fl_str_mv |
Repositório Científico de Acesso Aberto de Portugal (Repositórios Cientìficos) - Agência para a Sociedade do Conhecimento (UMIC) - FCT - Sociedade da Informação |
repository.mail.fl_str_mv |
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1799131599960276992 |