We consider the efficiency of Cournot and Bertrand equilibria in a duopoly with substitutable goods where firms invest … in process R&D. Under Cournot competition firms always invest more in R&D than under Bertrand competition. More … importantly, Cournot competition yields lower prices than Bertrand competition when the R&D production process is efficient, when …

there is, on the one hand, uncertainty about the relevant market information (like the type of competition, demand function …. The two bench mark oligopoly models S Bertrand and Cournot Sare assumed to be possible types of market competition. In …