Coalition Formation under Uncertainty : the Case of First-mover Disadvantage ( Preliminary Version )

Let time be continuous and indexed by t ≥ 0. Consider a horizontally differentiated oligopoly with three firms named 1, 2 and 3. Each firm is described by its brand demand function and for simplicity there are no costs of production. The firm i ∈ {1, 2, 3} produces one brand and charges at time t the unit price pit for the good of the own ∗Corresponding… CONTINUE READING