全球智库信息集成服务系统(G2TT): DP5910 Clash of Cultures: Muslims and Christians in the Ethnosizing Process

G2TT

来源类型	Discussion paper
规范类型	论文
来源ID	DP5910
	DP5910 Clash of Cultures: Muslims and Christians in the Ethnosizing Process
	Klaus F. Zimmermann; Amelie Constant; Liliya Gataullina; Laura Zimmermann
发表日期	2006-10-23
出版年	2006
语种	英语
摘要	We study a vertically differentiated market where two firms simultaneously choose the quality and price of the good they sell and where consumers also care for the average quality of the goods supplied. Firms are composed of two factions whose objectives differ: one is maximizing profit while the other maximizes revenues. The equilibrium concept we model, called Firm Unanimity Nash Equilibrium (FUNE), corresponds to Nash equilibria between firms when there is efficient bargaining between the two factions inside both firms. One conceptual advantage of FUNE is that oligopolistic equilibria exist in pure strategies, even though the strategy space (price, quality) is multi-dimensional. We first show that such equilibria are inefficient, with both firms underproviding quality. We then assume that the government takes a participation in one firm, which introduces a third faction, bent on welfare maximization, in that firm. We study the characteristics of equilibria as a function of the extent of government's participation. Our main results are twofold. First, government's participation in the firm providing the low quality good decreases efficiency while participation in the firm providing the high quality good increases efficiency. Second, the optimal degree of government's participation in the high-quality firm increases with how much consumers care for average equality.
主题	Industrial Organization ; Public Economics
关键词	Mixed oligopoly Vertical differentiation Factions Party-unanimity nash equilibrium
URL	https://cepr.org/publications/dp5910
来源智库	Centre for Economic Policy Research (United Kingdom)
资源类型	智库出版物
条目标识符	http://119.78.100.153/handle/2XGU8XDN/534745
推荐引用方式 GB/T 7714	Klaus F. Zimmermann,Amelie Constant,Liliya Gataullina,et al. DP5910 Clash of Cultures: Muslims and Christians in the Ethnosizing Process. 2006.