Oligopoly, uncertain demand, and forward markets

Rafael Eldor, Itzhak Zilcha

Research output: Contribution to journalArticlepeer-review


This paper analyzes the Nash equilibrium behavior of risk-averse oligopolistic firms under uncertain demand. It is shown that in the presence of unbiased forward markets the Nash Equilibrium (NE) output increases, that is, forward markets enhance copetition. Unlike the competitive or monopoly cases, here the introduction of an unbiased forward market may result in a (unique) NE in which all the firms are worse off.

Original languageEnglish
Pages (from-to)17-26
Number of pages10
JournalJournal of Economics and Business
Issue number1
StatePublished - Feb 1990


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