[cid:image002.png@01D0F540.14866B10] PUBLIC LECTURE INVITATION R E M I N D E R The Department of Economics and Finance at the Institute for Advanced Studies cordially invites you to the following Public Lecture <http://www.ihs.ac.at/vienna/resources/Economics/Papers/20130226_Paper_Zimmermann.pdf> Wednesday, September 23, 2015 Attention - New Address IHS, Josefstädter Strasse 39 , 1080 Vienna Lecture Room 201, second floor 5:00 pm Luis Carlos Corchon Diaz<http://www.eco.uc3m.es/personal/lcorchon/index_en.html> Carlos III Oligopolistic equilibrium with Financial Constraints<https://www.ihs.ac.at/fileadmin/public/ecofin_teaching/user_upload/Oligopolistic_Equilibrium_and_Financial_Constraints_Corchon_BFRAND20150326.pdf> Abstract: We provide a model of dynamic duopoly in which firms take into account the financial constraints of all firms. The study of the equilibria of our dynamic game leads to the concept of Bankruptcy-Free outputs (BF) in which no firm can drive another firm to bankruptcy without becoming bankrupt itself. We show that, in some cases, Cournot outputs are not a Markovian subgame perfect equilibrium because if these outputs were set, a firm may have incentives to ruin others. In these cases, standard trigger strategies in which collusion is sustained by infinite reversion to Cournot outputs cannot be used. We show that there is a Markov subgame perfect equilibrium in mixed strategies and study its properties. Predation occurs in equilibrium with a positive probability. Finally we adapt the folk theorem to our framework and show that it holds when minimax is taken over the BF outputs. paper jointly with Carmen Bevia and Yosuke Yasuda We are looking forward to seeing you! Institute for Advanced Studies Department of Economics and Finance Josefstädter Strasse 39, 1080 Vienna, Austria Tel.: +43 1 599 91 145 e-Mail: economics@ihs.ac.at<mailto:economics@ihs.ac.at> http://economics.ihs.ac.at<http://economics.ihs.ac.at/> LINKS DIRECTIONS TO IHS<https://www.google.at/maps/place/Institut+f%C3%BCr+H%C3%B6here+Studien/@48.2096845,16.3476134,15z/data=!4m2!3m1!1s0x0:0x86d55731043062b7> on Google maps<https://www.google.at/maps/place/Institut+f%C3%BCr+H%C3%B6here+Studien/@48.2096845,16.3476134,15z/data=!4m2!3m1!1s0x0:0x86d55731043062b7> ECONOMICS SEMINARS <https://www.google.com/calendar/embed?src=o7e40khrmr1vn2lo20mhbe539g%40group.calendar.google.com&ctz=Europe/Vienna> IN VIENNA<https://www.google.com/calendar/embed?src=o7e40khrmr1vn2lo20mhbe539g%40group.calendar.google.com&ctz=Europe/Vienna> on Google calendar<https://www.google.com/calendar/embed?src=o7e40khrmr1vn2lo20mhbe539g%40group.calendar.google.com&ctz=Europe/Vienna> [cid:image004.jpg@01CEBF6B.00DB9700]<http://economics.ihs.ac.at/> [http://www.ihs.ac.at/vienna/resources/Economics/Others/FB-f-Logo__blue_512.png]<https://www.facebook.com/IHS.Economics.and.Finance>IHS Department of Economics and Finance<https://www.facebook.com/IHS.Economics.and.Finance> [http://www.ihs.ac.at/vienna/resources/Economics/Others/twitter-bird-white-on-blue.png]<https://twitter.com/IHS_Eco_Fin>Dept of Economics and Finance @IHS_Eco_Fin<https://twitter.com/IHS_Eco_Fin> [http://www.ihs.ac.at/vienna/resources/Economics/Others/twitter-bird-white-on-blue.png]<https://twitter.com/IHS_Vienna>Institute for Advanced Studies @IHS_Vienna<https://twitter.com/IHS_Vienna> Diese Zusendung erfolgt entsprechend den Bestimmungen des TKG 247107 Abs. 4. Sollten Sie keine weiteren Zusendungen wuenschen, senden Sie uns bitte eine kurze Mitteilung an: economics@ihs.ac.at<mailto:economics@ihs.ac.at>. If you do not want to receive our mailings please send an e-mail to: economics@ihs.ac.at<mailto:economics@ihs.ac.at>. Also sent to noeg-l@wu.ac.at<mailto:noeg-l@wu.ac.at> (https://mailman.wu.ac.at/mailman/listinfo/noeg-l.)