Antitrust & Competition Policy Blog

Editor: D. Daniel Sokol
University of Florida
Levin College of Law

Thursday, June 14, 2018

A Note on the Desirability of the Supply Function Competition with Demand Uncertainty

Ismael Saglam offers A Note on the Desirability of the Supply Function Competition with Demand Uncertainty.

ABSTRACT: In this paper, we formalize a prediction of Klemperer and Meyer (1989) as to the possibility that in the presence of demand uncertainty the expected profits under the supply function competition may result in higher expected oligopoly profits than under the stochastic Cournot competition and investigate how this possibility is affected by certain attributes of the oligopolistic industry, such as the number of firms, the cost of producing a unit output, and the slope of the demand curve.

http://lawprofessors.typepad.com/antitrustprof_blog/2018/06/a-note-on-the-desirability-of-the-supply-function-competition-with-demand-uncertainty.html

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