Bayesian nash equilibrium in ''linear'' cournot models with private information about costs

Calculating explicit closed form solutions of Cournot models where firms have private information about their costs is, in general, very cumbersome. Most authors consider therefore linear demands and constant marginal costs. However, within this framework, the nonnegativity constraint on prices (and quantities) has been ignored or not properly dealt with and the correct calculation of all Bayesian Nash equilibria is more complicated than expected. Moreover, multiple symmetric and interior Bayesianf equilibria may exist for an open set of parameters. The reason for this is that linear demand is not really linear, since there is a kink at zero price: the general ''linear'' inverse demand function is P (Q) = max{a - bQ, 0} rather than P (Q) = a - bQ.

M. Lehmann [Marcel, chef de cabinet du] ministère des pensions : [photographie de presse] / [Agence Rol]

Référence bibliographique : Rol, 57897

M. Lehmann [Marcel, chef de cabinet du ministère des pensions] : [photographie de presse] / [Agence Rol]

Référence bibliographique : Rol, 57896

Entrepreneur's Overconfidence, Private Benefits and the Market Performance of the Firm

Many firms around the world are managed and partially owned by entrepreneurs. These entrepreneurs hold under diversified portfolios and, therefore, bear idiosyncratic risk in addition to systematic risk. To compensate the additional risk borne, they extract private benefits. In this paper, we analyse how an entrepreneur's overconfidence affects the market performance of the firm, through the channel of private benefits. We show that two dimensions of overconfidence, namely overestimation of future cash-flows and underestimation of idiosyncratic risk (called miscalibration), have opposite effects on the private benefits extracted by the entrepreneur. As a consequence, firms managed and partially owned by overconfident entrepreneurs can deliver overperformance or underperformance, depending on the prevalence of overestimation or miscalibration of the beliefs of the entrepreneur.

Déclaration du Roy sur les édicts de pacification, des duels, combats et rencontres, défenses à tous... d'entrer en ligues et associations, tant dedans que dehors le Royaume, et à ses officiers et pensionnaires de prendre gages et pensions d'autres que de luy, prohibitions des jurements et blasphèmes. Publié en la Cour de Parlement, le... Roy y séant en son lict de justice, le 2 octobre 1614

[Acte royal. 1614-10-01. Paris]

Opinion de C. Marbot, sur la résolution relative aux pensions des veuves et des enfans des défenseurs de la patrie : séance du 14 fructidor an 6 ([Reprod.]) / [publ. par le] Conseil des Anciens

Collection : Les archives de la Révolution française ; 11.1a.446

Iowa Community Private Well Study, 2004

Water fact sheet for Iowa Department of Natural Resources and the Geological Bureau.