Asymmetric dynamic price competition with uncertainty

• Type: Article in International Conference Proceedings Book
• Date: 2007

Authors

Fernanda A. Ferreira (Author) Other; Alberto A. Pinto (Author) FCUP

Conference proceedings International

Title: Proceedings in Applied Mathemetics and Mechanics (PAMM)

Pages: 1060307-1060308

Conference in Applied Mathemetics and Mechanics

Weinheim, Germany

Scientific classification

FOS: Natural sciences > Mathematics

Other information

Resumo (PT): We consider a dynamic setting-price duopoly model in which a dominant (leader) firm moves first and a subordinate (follower) firm moves second. We suppose that each firm has two different technologies, and uses one of them according to a certain probability distribution. The use of either one or the other technology affects the unitary production cost. We analyse the effect of the production costs uncertainty on the profits of the firms, for different values of the intercept demand parameters.

Abstract (EN): We consider a dynamic setting-price duopoly model in which a dominant (leader) firm moves first and a subordinate (follower) firm moves second. We suppose that each firm has two different technologies, and uses one of them according to a certain probability distribution. The use of either one or the other technology affects the unitary production cost. We analyse the effect of the production costs uncertainty on the profits of the firms, for different values of the intercept demand parameters.

Language: English

Type (Professor's evaluation): Scientific