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The unilateral accidenct model under a constrained Cournot-Nash duopoly

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Abstract

Summary:Thispaper extends thebasicunilateralaccidentmodel toallow forCournot competition. Two firms compete with production input and prevention as strategic variablesunderasymmetriccapacityconstraints. We find thatliabilityregimesexerta crucial influence on the equilibrium price and outputs. Strict liability leads to higher output andhigher riskcomparedto negligence. Wealsostudytheconditionsunderwhich bothregimes converge. KeyWords:TortLaw,Strict
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Dates and versions

hal-03458358 , version 1 (30-11-2021)

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Gérard Mondello, Evens Salies. The unilateral accidenct model under a constrained Cournot-Nash duopoly. 2018. ⟨hal-03458358⟩
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