TY - JOUR
T1 - Oligopoly, uncertain demand, and forward markets
AU - Eldor, Rafael
AU - Zilcha, Itzhak
PY - 1990/2
Y1 - 1990/2
N2 - 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.
AB - 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.
UR - http://www.scopus.com/inward/record.url?scp=38249019361&partnerID=8YFLogxK
U2 - 10.1016/0148-6195(90)90017-7
DO - 10.1016/0148-6195(90)90017-7
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AN - SCOPUS:38249019361
SN - 0148-6195
VL - 42
SP - 17
EP - 26
JO - Journal of Economics and Business
JF - Journal of Economics and Business
IS - 1
ER -