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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...
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infinity. In the limit, a range of outcomes stretching from Cournot via Stackelberg to Bertrand can result in equilibrium, i …-stage game, the set of outcomes is a quasi-hyperrectangle including Cournot, Allaz-Vila, and all two-stage Stackelberg outcomes …. In general, it consists of T-1 such hyperrectangles where the lower bound approaches the Bertrand outcome as T tends to …
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Cournot–Stackelberg endogeneity to oligopoly, and show that it additionally includes Bertrand in the generalized model. This … that forward buying input induces a “Cournot–Stackelberg endogeneity” (both Cournot and Stackelberg outcomes may result in … equilibrium) and forward selling output induces a convergence to the Bertrand solution. I analyze the generalized model where …
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Duopoly competition can take different forms: Bertrand, Cournot, Bertrand-Stackelberg, Cournot-Stackelberg and joint …
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