IDEAS home Printed from https://ideas.repec.org/a/oup/qjecon/v95y1980i4p641-662..html
   My bibliography  Save this article

"Rational" Duopoly Equilibria

Author

Listed:
  • John Laitner

Abstract

This paper examines duopoly models in which each firm tries to guess the reaction of its rival to a change in its output. We seek equilibria in which the guesses are accurate, or "rational." For static models we discover that many output combinations (X, Y) can fit into such equilibria and that our concept of "rationality" must necessarily be one-sided: if a firm has accurate expectations at (X, Y) about its rival's reactions, the competitor's reactions cannot themselves be based on "rational" calculations. Turning to a dynamic model, we find that an oversupply of solution pairs continues to be a problem.

Suggested Citation

  • John Laitner, 1980. ""Rational" Duopoly Equilibria," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 95(4), pages 641-662.
    • Handle: RePEc:oup:qjecon:v:95:y:1980:i:4:p:641-662.
    as

    Download full text from publisher

    File URL: http://hdl.handle.net/10.2307/1885485
    Download Restriction: Access to full text is restricted to subscribers.
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:oup:qjecon:v:95:y:1980:i:4:p:641-662.. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Oxford University Press (email available below). General contact details of provider: https://academic.oup.com/qje .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.