International duopoly with unknown costs

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

Authors

F. A. Ferreira (Author) Other; A. A. Pinto (Author) FCUP

Conference proceedings International

Title: Proceedings in Applied Mathemetics and Mechanics (PAMM)

Pages: 1041307-1041308

Conference in Applied Mathemetics and Mechanics

Weinheim, Germany

Scientific classification

FOS: Natural sciences > Mathematics

Other information

Resumo (PT): We consider two firms, located in different countries, selling the same homogeneous good in both countries. In each country there is a non negative tariff on imports of the good produced in the other country. 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 and also on the welfare of the governments.

Abstract (EN): We consider two firms, located in different countries, selling the same homogeneous good in both countries. In each country there is a non negative tariff on imports of the good produced in the other country. 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 and also on the welfare of the governments.

Language: English

Type (Professor's evaluation): Scientific