When Stackelberg and Cournot Equilibria Coincide
AbstractWe take a new look at the comparison between the Stackelberg equilibrium and the Cournot equilibrium. We show that, when the elasticity of the inverse market demand equals the curvature of the inverse market demand weighted by the Lerner Index, a generic Stackelberg leader sets the same quantity and earns the same profit as a generic Stackelberg follower. When the curvature of the inverse market demand equals the total number of firms in the industry, a coincidence among the quantities produced by a first mover, a second mover, and a generic firm facing Cournot competition occurs.
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Bibliographic InfoArticle provided by De Gruyter in its journal The B.E. Journal of Theoretical Economics.
Volume (Year): 8 (2008)
Issue (Month): 1 (January)
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Web page: http://www.degruyter.com
Other versions of this item:
- C73 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Stochastic and Dynamic Games; Evolutionary Games
- D43 - Microeconomics - - Market Structure and Pricing - - - Oligopoly and Other Forms of Market Imperfection
- L13 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Oligopoly and Other Imperfect Markets
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- Antonio Ruiz-Porras, 2008.
"Los beneficios del liderazgo en el mercado de depositos bancarios: una comparacion entre Cournot y Stackelberg,"
EconoQuantum, Revista de Economia y Negocios,
Universidad de Guadalajara, Centro Universitario de Ciencias Economico Administrativas, Departamento de Metodos Cuantitativos y Maestria en Economia., vol. 4(2), pages 79-105, Enero-Jun.
- Ruiz-Porras, Antonio, 2008.
"Los beneficios del liderazgo en el mercado de depósitos bancarios: Una comparación entre Cournot y Stackelberg
[The benefits of leadership in the banking deposit market: A comparison between Cour," MPRA Paper 11351, University Library of Munich, Germany.
- Ruiz-Porras, Antonio, 2008. "Los beneficios del liderazgo en el mercado de depósitos bancarios: Una comparación entre Cournot y Stackelberg
- Bruno Versaevel, 2009.
"Cumulative Leadership and Entry Dynamics,"
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