Recent empirical evidences show negative relationship between outsourcing and profitability. This paper provides a theoretical explanation for this phenomenon. In an oligopoly model, we show that firms earn lower profits in the outsourcing equilibrium compared to the situation where neither firm does outsourcing, and it holds irrespective of the intensity of competition. So, outsourcing creates...

• Investigate the strategic interactions of multiple car brands, which provide both autonomous and normal cars. Propose a two-stage game theoretic model for duopoly competition, with first choice cooperation strategy then Bertrand competition imperfect substitutes. Reveal brands’ incentives pricing decisions under four market structures: perfect public monopoly, private monopoly. Analyze welfar...

In this paper, we investigate the surfaces generated by binormal motion of Bertrand curves, which is called Razzaboni surface, in Minkowski 3-space. We discussed the geometric properties of these surfaces in M according to the character of Bertrand geodesics. Then, we define the Razzaboni transformation for a given Razzaboni surface. In other words, we prove that there exists a dual of Razzabon...

Abstract Bounded rationality, asymmetric information and foreign trade are widespread in the economic market, have been studied extensively oligopoly games, but there not many works discussing bounded rationality supply chain hybrid game. In contrast with existing works, our study, we innovatively construct a duopoly Bertrand–Cournot game model transnational information. It is assumed that upst...

We investigate the welfare effect of union activity in a relatively new oligopoly model, the Cournot-Bertrand model, where one firm competes in output (a la Cournot) and the other firm competes in price (a la Bertrand). The Nash equilibrium prices, outputs, and profits are quite diverse in this model, with the competitive advantage going to the Cournot-type competitor. A comparison of the resul...

• Two classical models in the theory of oligopoly are those of Coumot (1838) and Bertrand (1883). In both models the equilibrium concept is the noncooperative equilibrium of Nash (1950). In the former firms set quantities. In the latter prices are the strategy variables. In a duopoly situation where firms produce a homogeneous good and marginal costs are constant and equal for both firms, the B...

This paper studies the effects of advertising in a Bertrand duopoly model with informative advertising, which is an extension of Grossman and Shapiro (1984). It introduces spillover advertising effects on top of the direct advertising effects. Also, the model involves R&D activities, which make the model dynamical. It is shown that the spillover effects would make the environment more monopolis...

In a common market with costless mobility of all factors, regional governments can attract mobile rms by granting subsidies which must be nanced out of wage taxes on mobile labour. Since rms locate where subsidies are highest and workers settle where taxes are lowest, government are forced "in the splits" (double Bertrand-type tax competition). We assume that without government intervention the...