Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/40328
Authors: 
Hornig, Stephan O.
Year of Publication: 
2004
Series/Report no.: 
Tübinger Diskussionsbeitrag 240
Abstract: 
This paper further develops the standard modelling of information exchange between firms in the presence of cost uncertainty. In order to avoid consistency problems, we replace the normal distribution of the random variables, commonly used because of its convenient mathematical properties, by an alternative one, namely a non-symmetrically distributed random variable with a binomial positive outcome. This leads to new results concerning firms' information-disclosure policy: Confirming the empirical evidence and in contrast to the existing literature, we show that in Cournot markets firms never exchange their private information and in Bertrand markets only for very steep demand functions.
Subjects: 
information sharing
cost uncertainty
oligopoly
JEL: 
L13
D43
D82
C72
C73
Persistent Identifier of the first edition: 
Document Type: 
Working Paper

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