Classical oligopoly theory has strong analytical foundations but is weak in capturing the operating environment of oligopolists and the available knowledge they have for making decisions, areas in which the management literature is relevant. We use agent-based models to simulate the impact on firm profitability of policies that oligopolists can pursue when setting production levels. We develop ...

world, all available information is used, price wars never happen, and the collusive constraint is always binding. This cannot be taken as a serious description of the world of gasoline retailing. It is plausible, however, that station operators, for example, recognize that reducing their own prices induces price cutting at rival stations. They also might reasonably expect that once price cutti...

This paper highlights the rationale for exclusive territories in a model of repeated interaction between competing supply chains. We show that with observable contracts exclusive territories have two countervailing effects on manufacturers’ incentives to sustain tacit collusion. First, granting local monopolies to retailers softens competition in a one-shot game. Hence, punishment profits are l...

This paper examines conditions under which the agency problem in PPP (expropriation of the private partner by the state) could be rectified. We propose that the issue lies not in a ‘complete contract’ (a more protective ex ante contract) in mitigating the agency problem in PPP, but rather the opposite! A least protective contract (no contract at all), coupled with the dynamics of an optimal “in...

We investigate the effects of group size and matching protocol in Tullock contest experiments. In a 2 × factorial design, we implement partner random stranger-matching protocols contests between two three players. Group does not affect overall absolute bid levels, but rate overbidding is lower two-player groups across protocols. Matching bidding behaviour for three-player groups, reduces both l...

This study aims to explore the relationship between entrepreneurial behavior and tacit knowledge sharing through 314 questionnaires provided by university incubators. For data analysis, Pearson correlation is used. The study has found that there are meaningful relationships between entrepreneurial behavior and tacit knowledge sharing in university incubators. Existing research has concentrated...

nursing tacit knowledge is a knowledge that is produced inside the mind of nurses and not saved in any databases. the main challenge of nursing knowledge management is transferring tacit knowledge inside the mind of nurses to the others – especially scholars and researchers. this study evaluates personal, organizational, and technological factors affecting the tacit knowledge transfer among nur...

This study empirically investigates the theory that odd numbered pricing points can be used as focal points to facilitate tacit collusion. Odd ending prices are heavily used in many retail markets. While the demand e ects of odd pricing points are commonly studied, their potential role in the coordination of prices is rarely discussed. I show that gasoline stations in the U.S. disproportionatel...

This paper studies a dynamic, quantity setting duopoly game characterized as follows: Each firm produces an indivisible output over a potentially infinite horizon, facing the constraint that its cumulative production cannot exceed an initially given bound. The environment is otherwise stationary; the remaining productive capacities of the firms at any moment are common knowledge; the firms choo...

This paper analyzes a finite horizon, sequential move pricing duopoly, restricting attention to Markov strategies. The solution yields stationary patterns, independent of initial conditions, where the reaction-functions follow cycles of three periods. The market price never settles down, and is at all times strictly above marginal cost. Long-run average industry profits are approximately 5 6 of...