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People smuggling syndicates: An oligopoly analysis in context of the Söderköping process

Lundgren, Ted (2008): People smuggling syndicates: An oligopoly analysis in context of the Söderköping process. Published in: Revista ştiinţifică “Studii Economice" , Vol. 2, No. 3-4 (1 December 2008): pp. 33-39.

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Abstract

In the article, a model of oligopolistic (duopolistic) competition between two people smuggling syndicates is developed. I consider the Cournot and Stackelberg cases. First, the deterministic case is considered, where I show the conditions of profit maximisation for the syndicates. Then, a model with stochastic variables is introduced, where the number of migrants are random. It is shown that the deterministic case is but a special case of the stochastic one, when the distribution is concentrated in one point.

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