Abstracts » Economics

A note on endogenous firm efficiency in Cournot models of incomplete information

Article Abstract:

S. Martin's (1993) Cournot competition model showing the relationship between inefficiency and the number of firms in an industry is useful in situations where complete information exists with the consequent expectations of ever increasing returns to scale. However, even in such situations, which are characterized by a decrease in competition, firms act inefficiently because they focus too much on managerial functions to the exclusion of other matters.

Economics, Information theory, Information theory in economics

---

Cournot competition, forward markets and efficiency

Article Abstract:

An analysis of the relationship among Cournot competition, forward markets and efficiency is presented. The analysis focuses on a model where demand conditions are set for two Cournot duopolists. Contracts for delivery in forward market settings are then examined. It is shown that both duopolists will sell forward, making themselves worse off at the expense of consumers who become better off under equilibrium market conditions.

Duopolies

---

X-inefficiency, competition and market information

Article Abstract:

Recent studies on the impact of market competition on the X-inefficiency of firms are analyzed using a model of a duopoly affected by adverse selection on marginal costs. It is argued that contrary to the claims of existing studies, competition affects X-inefficiency with changes in managerial incentives. It is also shown that correlations among managers' private information eliminates the rationale for firm X-inefficiency.

Analysis, Organizational effectiveness

Some parts © 2012 Advameg, Inc.