Economics Dictionary of ArgumentsHome
| |||
|
| |||
| Competition: Competition is a rivalry or contest between individuals or groups striving for a common goal, often involving effort, skill, or resources._____________Annotation: The above characterizations of concepts are neither definitions nor exhausting presentations of problems related to them. Instead, they are intended to give a short introduction to the contributions below. – Lexicon of Arguments. | |||
| Author | Concept | Summary/Quotes | Sources |
|---|---|---|---|
|
Alasdair Smith on Competition - Dictionary of Arguments
Krugman III 68 Competition/international trade/Alasdair Smith: Competition between firms is modeled as a two-stage game. In the first stage of the game, firms choose model numbers, taking account of the effect of their choices on the second-stage equilibrium, and the outcome is a Nash equilibrium in model numbers. >Nash equilibrium. Krugman III 69 The second stage is Cournot competition* (modified to take account of quantitative restrictions on imports) in output, given model numbers. >Cournot Competition, >Bertrand Competition. Strategies: Firms maximize profits, taking account of the impact of scale economies on marginal costs, of the effect of taxes, tariffs, and transport costs on the wedge between producer and consumer prices, and of the effect of elasticity of demand in different markets on their marginal revenues. >Profit maximization, >Tariffs, >Elasticity, >Taxation, >Transport, >Price, >Consumer price, >Production cost, >Markets. National markets are assumed to be segmented, so that firms can set different prices in different markets. Market share: A producer with a large market share in a particular national market sees its own behavior as having a strong influence on the overall price of cars in that market and thus perceives a relatively inelastic demand for its product; this leads such firms to have higher price-cost margins. >Voluntary exporst restraints (VER). * ((s) In the economics of oligopoly, the Cournot and Bertrand models explore different ways firms can compete. Cournot models focus on quantity competition, where firms choose output levels, while Bertrand models focus on price competition, where firms set prices. In Bertrand competition, firms making identical products often reach an equilibrium where prices are equal to marginal costs, leading to zero economic profits. In contrast, Cournot competition typically leads to higher prices and positive profits for firms, as they limit their output to maximize profits.) Alasdair Smith. „Strategic Trade Policy in the European Car Market.“ In: Paul Krugman and Alasdair Smith (Eds.) 1994. Empirical Studies of Strategic Trade Policy. Chicago: The University of Chicago Press._____________Explanation of symbols: Roman numerals indicate the source, arabic numerals indicate the page number. The corresponding books are indicated on the right hand side. ((s)…): Comment by the sender of the contribution. Translations: Dictionary of Arguments The note [Concept/Author], [Author1]Vs[Author2] or [Author]Vs[term] resp. "problem:"/"solution:", "old:"/"new:" and "thesis:" is an addition from the Dictionary of Arguments. If a German edition is specified, the page numbers refer to this edition. |
EconSmith I Adam Smith The Theory of Moral Sentiments London 2010 EconSmithV I Vernon L. Smith Rationality in Economics: Constructivist and Ecological Forms Cambridge 2009 EconKrug I Paul Krugman Volkswirtschaftslehre Stuttgart 2017 EconKrug II Paul Krugman Robin Wells Microeconomics New York 2014 Krugman III Paul Krugman Alasdair Smith Empirical Studies of Strategic Trade Policy Chicago: The University of Chicago Press 1994 |
||
Authors A B C D E F G H I J K L M N O P Q R S T U V W X Y Z
Concepts A B C D E F G H I J K L M N O P Q R S T U V W X Y Z
