Using a linear complementarity approach, we simulate the Japanese wholesale electricity market as a transmission-constrained Cournot market. Following Hobbs (2001), our model adopts the Cournot assumption in the energy market and the Bertrand assumption in the transmission market. The Bertrand assumption means that generators consider transmission charges as being exogenous, which can be interp...

February 19, 2015 Type Package Title Latent Class Models with Covariate Effects on Underlying and Measured Variables Version 1.0 Date 2013-05-03 Author Aurelie Bertrand and Christian M. Hafner Maintainer Aurelie Bertrand Description Estimation of latent class models with covariate effects on underlyi...

This paper reports an experiment conducted to examine the effects of changing the form of strategic interactions (Bertrand or Cournot), and changing underlying information conditions on the usefulness of the ‘ALM,’ a merger simulation device used by the U.S. Department of Justice. The experiment consists of twenty 60-period quadropolies. After period 40 a merger is induced. Behaviorally, Courno...

The paper presents simulation of two classic duopoly games, those of Cournot and Bertrand. The simulation is done with a very simple Discrete Event Simulation system, aGPSS, developed for economics students. With the Cournot model one can study under which conditions the Cournot solution will be obtained even if the parties lack knowledge about demand and costs. The Bertrand model, with stochas...

This paper presents an oligopoly model of multiproduct firms in which firms are endowed with possibly different marginal cost and product quality, and choose product ranges before product market competition. Consistent with empirical evidence on a positive relationship between firm size and product diversification, the analysis suggests that firms with higher quality-cost margins typically have...