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Cartels are inherently instable. Each cartelist is best off if it breaks the cartel, while the remaining firms remain loyal. If firms interact only once, if products are homogenous, if firms compete in price, and if marginal cost is constant, theory even predicts that strategic interaction...
Persistent link: https://www.econbiz.de/10010266995
. The application of focus for Cournot competition is power markets while that for Bertrand competitionis product design. We …The focus of this research is on the analysis and computation of equilibria in noncooperative Cournot and Bertrandgames … consider Cournot-based models for strategic behavior in power markets while Bertrandbasedmodels are employed for analyzing the …
Persistent link: https://www.econbiz.de/10009477711
This paper demonstrates that the standard conclusions regarding the comparison of Cournot and Bertrand competition are … Cournot competition yields higher output, lower wholesale prices, lower final prices, higher consumers' surplus, and higher … total welfare than Bertrand competition. …
Persistent link: https://www.econbiz.de/10010352457
the relative profitability of Cournot vs. Bertrand when a per unit royalty is applied. By contrast, we find that Cournot … yields higher profits than Bertrand under ad valorem royalties, regardless of the strength of network effects. …
Persistent link: https://www.econbiz.de/10012419715
This paper reconsiders the literature on the irrelevance of privatization in mixed markets, addressing both quantity and price competition in a duopoly with differentiated products. By allowing for partially privatizing a state-controlled firm, we explore competition under different timings of...
Persistent link: https://www.econbiz.de/10011496185
Letters, 124: 122-126) show that in a vertically related market Cournot competition yields higher social welfare compared to … Bertrand competition if the upstream firm subsidises the quantity setting downstream firm’s production via negative wholesale …
Persistent link: https://www.econbiz.de/10011584921
This paper deals with capacity constrained price competition in a duopoly model. The model resembles that in Kreps and Scheinkman (1983), but the timing of the investment/capacity choice is endogenous. In equilibrium, one of the firms will invest to become the Stackelberg leader, although the...
Persistent link: https://www.econbiz.de/10005423864
market competition, Cournot and Bertrand. It shows that the cost of technology has differential impact on technology adoption … ex post cost asymmetry between firms is higher under Bertrand competition than under Cournot competition. If the cost of … technology is high, Bertrand competition leads to higher cost-efficiency than Cournot competition provided that the cost reducing …
Persistent link: https://www.econbiz.de/10005045001
Bertrand equilibria are in continuous mixed strategies, while every Cournot duopoly has an equilibrium in pure strategies, or …In a two-market Bertrand duopoly,each of two firms chooses one of two markets and a price in that market. All four … choices are made simultaneously. In a two-market Cournot duopoly, the firms choose quantities rather than prices.It is well …
Persistent link: https://www.econbiz.de/10005626630
competition than under Cournot competition, implying that the classical result of Singh and Vives (1984) that Bertrand prices are …Hackner (2000) shows that in a differentiated oligopoly with more than two firms , prices may be higher under Bertrand … always lower than Cournot prices is sensitive to the duopoly assumption. Hackner (2000), however, leaves unanswered the …
Persistent link: https://www.econbiz.de/10005628039