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QUANTITY PRECOMMITMENT AND BERTRAND COMPETITION YIELD COURNOT OUTCOMES: A CASE WITH PRODUCT DIFFERENTIATION *
Author(s) -
YIN XIANGKANG,
YEWKWANG NG
Publication year - 1997
Publication title -
australian economic papers
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.351
H-Index - 15
eISSN - 1467-8454
pISSN - 0004-900X
DOI - 10.1111/j.1467-8454.1997.tb00816.x
Subject(s) - cournot competition , precommitment , bertrand competition , economics , product differentiation , duopoly , bertrand paradox (economics) , microeconomics , yield (engineering) , competition (biology) , oligopoly , ecology , materials science , biology , metallurgy
Using a simple model of two‐stage duopoly game, this paper shows that Bertrand‐like price competition on a differentiated goods market, following a simultaneous endogenous choice of production capacity, yields the Cournot‐like outcomes.