Information Advantage in Cournot Oligopoly

Consider an oligopolistic industry where firms have access to the same technology but are asymmetrically informed about the environment. Even though it is commonplace to think that in this context superior information leads to higher profits, we find that under Cournot competition this is not genera...

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Bibliographic Details
Published in:Journal of economic theory 2002-09, Vol.106 (1), p.151-160
Main Authors: Einy, Ezra, Moreno, Diego, Shitovitz, Benyamin
Format: Article
Language:English
Subjects:
Competition
Cournot competitition
Economic models
Economic theory
information advantage
Oligopoly
Studies
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Summary:Consider an oligopolistic industry where firms have access to the same technology but are asymmetrically informed about the environment. Even though it is commonplace to think that in this context superior information leads to higher profits, we find that under Cournot competition this is not generally the case: It holds when firms' technology exhibits constant returns to scale, but it does not necessarily hold otherwise. Journal of Economic Literature Classification Numbers: C72, D43, L13.
ISSN:0022-0531
1095-7235
DOI:10.1006/jeth.2001.2871