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Price versus quantity in a mixed duopoly

Authors
Journal
Economics Letters
0165-1765
Publisher
Elsevier
Volume
116
Issue
2
Identifiers
DOI: 10.1016/j.econlet.2012.02.012
Keywords
  • Cournot
  • Bertrand
  • Mixed Markets
  • Differentiated Products

Abstract

Highlights ► We analyze the endogenous choice of a price or a quantity contract under mixed duopoly. ► We employ a differentiated two-goods model with a linear demand function. ► We find that choosing the price contract is a dominant strategy for both firms. ► Our main result holds not only with the substitute goods but also with the complements.

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