Information exchanges in Cournot oligopolies

Information exchanges in Cournot oligopolies

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Article ID: iaor2004467
Country: Cuba
Volume: 24
Issue: 1
Start Page Number: 21
End Page Number: 27
Publication Date: Jan 2003
Journal: Revista de Investigacin Operacional
Authors: , ,
Abstract:

In this work we analyse the profitability of information sharing among Cournot oligopolists receiving private information about a random demand. We model the random demand as a linear demand having an unknown intercept. In this scenario, firms observe private signals about the unknown parameter. We show that if the private signal observed by firms is accurate enough, information exchange is profitable.

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