The authors study pure strategy Bertrand equilibria in a duopoly in which two firms produce a homogeneous good with convex cost functions, and they seek to maximize the weighted sum of their absolute and relative profits. They show that there exists a range of the equilibrium price in...

This study derives pure strategy Bertrand equilibria in a duopoly in which two firms produce a homogeneous good with convex cost functions and seek to maximize the weighted sum of their absolute and relative profits. The study shows that there exists a range of equilibrium prices in duopolistic...

We present an analysis about adoption of new technology by firms in a duopoly with differentiated goods under absolute and relative profit maximization. Technology itself is free, but each firm must expend a fixed set-up cost, for example, for education of its staff. Under absolute profit...

We study the equilibrium with the quantity setting behavior and price setting behavior of firms in a duopoly under relative profit maximization with constant conjectural variations, and arrive at the following results. 1) Conjectural variations of firms are irrelevant to the equilibrium of a...

We investigate the relation between a Cournot equilibrium and a Bertrand equilibrium in a duopoly with differentiated substitutable goods in which each firm maximizes its relative profit that is the difference between its profit and the profit of the rival firm. We show that when firms maximize...