Publication
Financial Structure, Product Market Decisions and Default Risk in an Asymmetric Duopoly
| datacite.subject.fos | Ciências Sociais::Economia e Gestão | |
| datacite.subject.sdg | 08:Trabalho Digno e Crescimento Económico | |
| datacite.subject.sdg | 10:Reduzir as Desigualdades | |
| dc.contributor.author | Costa, Magali | |
| dc.contributor.author | Pires, Cesaltina Pacheco | |
| dc.date.accessioned | 2025-05-27T15:21:08Z | |
| dc.date.available | 2025-05-27T15:21:08Z | |
| dc.date.issued | 2015 | |
| dc.description.abstract | Financial and output market decisions are crucial to the success or failure of an organization. In this paper we analyze the equilibrium default risk in a two-stage duopoly model with an uncertain environment, where firms decide their financial structure in the first stage of the game and decide their quantities in the second stage of the game. Using numerical analysis, we analyze the impact of changing the asymmetry in the two firms' marginal costs on the equilibrium default risk. Our results show that as a firm becomes less efficient it is optimal to reduce its debt level and the quantity produced. The reverse is true for the more efficient firm. This behavior implies that although higher marginal cost leads to lower profits, the less efficient firm reduces its default probability due to a more cautious behavior in the financial and product market. © Springer International Publishing Switzerland 2015. All rights reserved. | eng |
| dc.identifier.citation | Costa, M., Pires, C.P. (2015). Financial Structure, Product Market Decisions and Default Risk in an Asymmetric Duopoly. In: Póvoa, A., de Miranda, J. (eds) Operations Research and Big Data. Studies in Big Data, vol 15. Springer, Cham. https://doi.org/10.1007/978-3-319-24154-8_6 | |
| dc.identifier.doi | 10.1007/978-3-319-24154-8_6 | |
| dc.identifier.isbn | 9783319241524 | |
| dc.identifier.isbn | 9783319241548 | |
| dc.identifier.issn | 2197-6503 | |
| dc.identifier.issn | 2197-6511 | |
| dc.identifier.uri | http://hdl.handle.net/10400.8/13007 | |
| dc.language.iso | eng | |
| dc.peerreviewed | yes | |
| dc.publisher | Springer Nature | |
| dc.relation.hasversion | https://link.springer.com/chapter/10.1007/978-3-319-24154-8_6#citeas | |
| dc.relation.ispartof | Studies in Big Data | |
| dc.relation.ispartof | Operations Research and Big Data | |
| dc.rights.uri | N/A | |
| dc.subject | Capital structure | |
| dc.subject | D43 | |
| dc.subject | Default risk jel classification | |
| dc.subject | G32 | |
| dc.subject | G33 | |
| dc.subject | Product market competition | |
| dc.title | Financial Structure, Product Market Decisions and Default Risk in an Asymmetric Duopoly | eng |
| dc.type | book part | |
| dspace.entity.type | Publication | |
| oaire.citation.endPage | 48 | |
| oaire.citation.startPage | 41 | |
| oaire.citation.title | Operations Research and Big Data | |
| oaire.citation.volume | 15 | |
| oaire.version | http://purl.org/coar/version/c_970fb48d4fbd8a85 | |
| person.familyName | Costa | |
| person.givenName | Magali | |
| person.identifier.orcid | 0000-0001-7738-504X | |
| relation.isAuthorOfPublication | 82bdc156-47ad-4a57-ba0c-5841d3eb2361 | |
| relation.isAuthorOfPublication.latestForDiscovery | 82bdc156-47ad-4a57-ba0c-5841d3eb2361 |
Files
Original bundle
1 - 1 of 1
Loading...
- Name:
- Costa & Pires (2015). Financial structure, product market decisions and default risk in an asymmetric duopoly.pdf
- Size:
- 142.26 KB
- Format:
- Adobe Portable Document Format
License bundle
1 - 1 of 1
No Thumbnail Available
- Name:
- license.txt
- Size:
- 1.32 KB
- Format:
- Item-specific license agreed upon to submission
- Description: