Roy, Jaideep; Tranæs, Torben - Centre for Industrial Economics (CIE), Økonomisk Institut - 2002
This paper is inspired by the ever lasting discussions over Bertrand's (1883) price-deviation critique of Cournot's (1838) duopoly analysis. We consider a homogenous good duopoly with constant marginal costs and no capacity constraints, but we allow firms to set either a quantity, a price, or...