Abstract:Abstract. We consider the complexity of decision making with regards to predatory pricing in multimarket oligopoly models. Specifically, we present multimarket extensions of the classical single-market models of Bertrand, Cournot and Stackelberg, and introduce the War Chest Minimization Problem. This is the natural problem of deciding whether a firm has a sufficiently large war chest to win a price war. On the negative side we show that, even with complete information, it is hard to obtain any multiplicative a… Show more
“…See for example Wilco et al [9]. Thain and Vetta [21] analyze predatory strategies, i.e., where a firm with sufficient power plays to make the opponents' profit negative.…”
“…See for example Wilco et al [9]. Thain and Vetta [21] analyze predatory strategies, i.e., where a firm with sufficient power plays to make the opponents' profit negative.…”
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