Oligopoly, uncertainty and strategic forward transactions

Article Abstract:

Forward transactions can be an effective tool in the hands of an oligopolist producing a product traded in the futures market. In a sequential model where forward market decisions are made prior to spot decisions, noncompetitive producers can benefit more in forward transactions. But strategy and risk hedging, or the provisions for uncertainty, as well as the type of conjectural variation assumed also determine whether the oligopolist will end up long or short on the forward market.

Security and commodity exchanges, Futures market, Futures markets, Uncertainty

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Collusion in finitely-repeated oligopolies

Article Abstract:

An analysis of the collusion process in finitely-repeated oligopolies is presented. The analysis considers the association of backward induction agreement in the treatment of collusive behavior among oligopolistic firms. Infinitely-repeated games are often applied for evaluating firm decision-making under such conditions. It is shown that a discriminating trigger strategy may be developed for collusive firms with finite lives.

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Variety and size regulation in discrete choice oligopoly

Article Abstract:

A study was conducted to examine discrete choice oligopoly market variables. The study assumes that imperfectly competitive markets for differentiated products may have minimal brand choices given highly heterogeneous consumer preferences. Results show that regulation of purchase size generates welfare improvement when markets have indivisible brands and consumers purchase customized quantities of the good.

Consumer preferences

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