Conferences at Department of Economics, University of Toronto, Canadian Economic Theory Conference 2012

Font Size:  Small  Medium  Large

Communication in Cournot Oligopoly

Maria Goltsman*, Gregory Pavlov

Date: 2012-05-04 5:30 pm – 6:00 pm
Last modified: 2012-04-22

Abstract


We study communication in a static oligopoly model with unveri fiable private information.
Contrary to the previous literature, we show that communication between fi rms in the static setting can be informative even when it is not substantiated by any
commitment or costly actions. We exhibit a simple mechanism that ensures informative
communication and show that any informative communication equilibrium interim
Pareto dominates the uninformative equilibrium for the fi rms.


Full Text: Untitled