A stochastic version of a Stackelberg-Nash-Cournot equilibrium model
Article Abstract:
A stochastic version of the Stackelberg-Nash-Cournot model developed by Murphy et al. (1983) is developed. In the first stage of this framework, the leader firm in an oligopolistic market determines and makes known its production level while considering the reaction of the followers. This decision is made in the context of an uncertain market demand. The second stage is characterized by the followers who are aware of the leader's output respond to this level based on the Cournot assumption. This action is made at a time when demand is known. A numerical application of the model is made to the gas market in Europe. In this environment, the leader is Norway, which had to decide in 1990 in the most intelligent approach for the year 2000 by considering the response of the other producers in 2000.
Publication Name: Management Science
Subject: Business, general
ISSN: 0025-1909
Year: 1997
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Uncertainty, experience and the 'winner's curse' in OCS lease bidding
Article Abstract:
The primary hypothesis of the currently accepted bidding models is empirically tested using in two offshore oil drilling tract areas of differing values. As expected, the more bidders competing on a specific parcel under uncertain conditions, the lower the bid levels. This is not the case, however, in sales with less uncertainty due to previous bidding experience and previous ownership of closely related tracts. This discrepancy based upon uncertainty levels was not shown by earlier models because of a bias occurring when only positive bids are used. A two-stage procedure is used in the competitive-bidding analysis that adjusts for the selection bias by allowing information from the dichotomous 'bid, no-bid' decision to be considered by the model.
Publication Name: Management Science
Subject: Business, general
ISSN: 0025-1909
Year: 1986
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Measuring market response to price changes: a classification approach
Article Abstract:
A research study described a method for evaluating multiple marketing variables' interaction effects via a historical database searching that focuses on the occurrence of similar price changes in the past. The evaluation of market responses to these past changes can be used to assess the market response to future price changes. An empirical example is presented to show how market response to future price changes can be forecasted via the use of information in huge scanner databases.
Publication Name: Journal of Business Research
Subject: Business, general
ISSN: 0148-2963
Year: 1995
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