Tuesday, October 9, 2012
Posted by D. Daniel Sokol
Dimitry Rtischev, Gakushuin University analyzes Strategic commitment to pursue a goal other than profit in a Cournot duopoly.
ABSTRACT: Competition among profit-seeking firms in an oligopolistic industry inherently generates incentives for firms to commit to maximize a performance metric other than profit. We briefly review the underlying theory, analyze its ramifications in a Cournot duopoly, and consider feasibility constraints from the perspective of strategic management.