Franck, Bernard; Le Pape, Nicolas - In: International Journal of Industrial Organization 26 (2008) 2, pp. 607-615
We analyze the strategic use of the debt in a duopoly model of Cournot competition. We consider a two stage model where debt acts as a commitment variable and we characterize subgame perfect equilibria. We differ from several models based on the strategic value of the debt such as Wanzenried...