The authors study a dynamic model of duopoly in which firms choose both prices and quantities. If quantity (capacity) choices are relatively inflexible , firms generally carry excess (idle) capacity in equilibrium. Because of this enforcement cost, firms are unable to achieve monopoly levels. This contrasts wit h models in which firms compete in either prices or quantities alone. On the oth er hand, if capacities are flexible, firms may be able to sustain monopoly behavior. Copyright 1987 by The Review of Economic Studies Limited.
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Volume (Year): 54 (1987) Issue (Month): 1 (January) Pages: 23-35 Download reference. The following formats are available: HTML
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Raymond Deneckere & Dan Kovenock, 1988.
"Price Leadership,"
Discussion Papers
773, Northwestern University, Center for Mathematical Studies in Economics and Management Science.
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Deneckere, Raymond J & Kovenock, Dan, 1992.
"Price Leadership,"
Review of Economic Studies,
Blackwell Publishing, vol. 59(1), pages 143-62, January.
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