Abstract Recently, in their 2019 paper, Poyago-Theotoky and Yong consider a managerial Cournot duopoly with pollution externalities emission taxes propose an explicit environmental incentive compensation contract. The authors compare several exogenous equilibria emerging the symmetric sub-games which owner offers either delegation contract or standard sales contract: abatement social welfare (r...

In a theoretical framework we compare production-in-advance type and production-to-order type environments. We carry out our analysis in the framework of a symmetric capacity-constrained Bertrand-Edgeworth duopoly game and prove that the equilibrium profits are the same in case of production in advance and production to order. In addition, advance production results in higher prices than produc...

We study entry in a growing market by ex-ante symmetric duopolists when sunk costs differ for the innovating and imitating firm. Strategic competition takes the form either of a preemption race or of a war of attrition, the latter being likelier when demand uncertainty is high. Industry value is maximized when firms seek neither to race nor to delay investment. Free imitation is socially costly...

Designing business models that take into consideration the role of advertising support is critical to the success of online services. In this paper, we address the challenges of these business model strategies and compare different ad revenue models. We use game theory to model vertical differentiation in both monopoly and duopoly settings, in which online service providers may offer an ad-free...