This file is part of IDEAS, which uses RePEc data


[ Papers | Articles | Software | Books | Chapters | Authors | Institutions | JEL Classification | NEP reports | Search | New papers by email | Author registration | Rankings | Volunteers | FAQ | Blog | Help! ]

Comparing Bertrand and Cournot Equilibria: A Geometric Approach

Author info | Abstract | Publisher info | Download info | Related research | Statistics
Author Info
Leonard Cheng
Abstract

By presenting a geometric analysis of a duopoly, this article attempts to provide some insights into recent results by Singh and Vives regarding Bertrand and Cournot equilibria and the relative dominance of price and quantity strategies. It shows that under fairly general and reasonable assumptions (a) Cournot equilibrium prices (quantities) are higher than Bertrand equilibrium prices (quantities) and (b) a quantity (price) strategy dominates a price (quantity) strategy if the goods are substitutes (complements).

Download Info
To download:

If you experience problems downloading a file, check if you have the proper application to view it first. Information about this may be contained in the File-Format links below. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.

File URL: http://links.jstor.org/sici?sici=0741-6261%28198521%2916%3A1%3C146%3ACBACEA%3E2.0.CO%3B2-1&origin=repec
File Format: application/pdf
File Function: full text
Download Restriction: Access to full text is restricted to JSTOR subscribers. See http://www.jstor.org for details.

As the access to this document is restricted, you may want to look for a different version under "Related research" (further below) or search for a different version of it.

Publisher Info
Article provided by The RAND Corporation in its journal RAND Journal of Economics.

Volume (Year): 16 (1985)
Issue (Month): 1 (Spring)
Pages: 146-152
Download reference. The following formats are available: HTML (with abstract), plain text (with abstract), BibTeX, RIS (EndNote, RefMan, ProCite), ReDIF
Handle: RePEc:rje:randje:v:16:y:1985:i:spring:p:146-152

Contact details of provider:
Web page: http://www.rje.org

Order Information:
Web: http://gemini.econ.umd.edu/cgi-bin/rje_online.cgi

For technical questions regarding this item, or to correct its listing, contact: ().

Related research
Keywords:

Cited by:
(explanations, Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.)

  1. Arghya Ghosh & Manipushpak Mitra, 2008. "Comparing Bertrand and Cournot Outcomes in the Presence of Public Firms," Discussion Papers 2008-18, School of Economics, The University of New South Wales. [Downloadable!]
  2. Gregory E. Goering & Michael K. Pippenger & R. Kelley Pace, 1999. "Factor market effects upon product market equilibrium," Managerial and Decision Economics, John Wiley & Sons, Ltd., vol. 20(1), pages 37-43.
  3. Jaideep Roy & Torben Tranæs, 2002. "Unrestricted Duopoly Competition: Equilibrium and Survival," CIE Discussion Papers 2002-01, University of Copenhagen. Department of Economics. Centre for Industrial Economics. [Downloadable!]
  4. Nolan Miller & Amit Pazgal, 2007. "Advertising budgets in competitive environments," Quantitative Marketing and Economics, Springer, vol. 5(2), pages 131-161, June. [Downloadable!] (restricted)
  5. Paolo Buccirossi, 2001. "Price Competition And Probabilistic Demand Yield The Cournot Outcome, The Bertrand Outcome, And Much More," Working Papers 41, Sapienza University of Rome, Department of Public Economics. [Downloadable!]
  6. Dale W. Henderson & Ning S. Zhu, 1995. "Uncertainty, instrument choice, and the uniqueness of Nash equilibrium: microeconomic and macroeconomic examples," International Finance Discussion Papers 526, Board of Governors of the Federal Reserve System (U.S.). [Downloadable!]
  7. Furth, D., 2007. "Anything goes with heterogeneous, but not with homogeneous oligopoly," CeNDEF Working Papers 07-12, Universiteit van Amsterdam, Center for Nonlinear Dynamics in Economics and Finance. [Downloadable!]
  8. Sherrill Shaffer, 2008. "Earnings Valuation And Sources Of Growth," CAMA Working Papers 2008-32, Australian National University, Centre for Applied Macroeconomic Analysis. [Downloadable!]
  9. Chrysovalantou Milliou & Emmanuel Petrakis, 2009. "Timing of Technology Adoption and Product Market Competition," CESifo Working Paper Series CESifo Working Paper No. , CESifo Group Munich. [Downloadable!]
  10. Koji Okuguchi, 1989. "The Bertrand And Cournot Equilibria For International Duopoly With Multimarkets," International Economic Journal, Korean International Economic Association, vol. 3(4), pages 61-68, December. [Downloadable!] (restricted)
  11. Kisoo Kim, 1989. "Trade Restricting Policies Under Uncertainty And A Differentiated Duopoly," International Economic Journal, Korean International Economic Association, vol. 3(4), pages 45-59, December. [Downloadable!] (restricted)
  12. Kangsik, Choi, 2008. "Cournot-Bertrand competition in a unionized mixed duopoly," MPRA Paper 12787, University Library of Munich, Germany, revised 26 Dec 2008. [Downloadable!]
  13. Jim Y. Jin & Tatiana Damjanovic & Osiris J.Parcero, 2005. "Price and Output Comparison under Alternative Duopoly Structures," CRIEFF Discussion Papers 0516, Centre for Research into Industry, Enterprise, Finance and the Firm. [Downloadable!]
  14. Choi, Kangsik, 2008. "Comparing Cournot and Bertrand Competition in a Unionized Mixed Duopoly," MPRA Paper 15468, University Library of Munich, Germany, revised 27 May 2009. [Downloadable!]
  15. Luca Lambertini, 1996. "Strategic Delegation and the Shape of Market Competition," Working Papers 267, Dipartimento Scienze Economiche, Universita' di Bologna. [Downloadable!]
    Other versions:
  16. Gian-Italo Bischi & Ahmad K. Naimzada & Lucia Sbragia, 2004. "Oligopoly Games with Local Monopolistic Approximation," Working Papers 81, University of Milano-Bicocca, Department of Economics, revised Nov 2004. [Downloadable!]
    Other versions:
  17. Jim Jin & Osiris J. Parcero, 2006. "Competitiveness and Conjectural Variation in Duopoly Markets," CRIEFF Discussion Papers 0613, Centre for Research into Industry, Enterprise, Finance and the Firm. [Downloadable!]
  18. Miller, Nolan & Pazgal, Amit, 2002. "Strategic Trade and Delegated Competition," Working Paper Series rwp02-042, Harvard University, John F. Kennedy School of Government. [Downloadable!]
  19. M. Dolores Alepuz & Santiago J. Rubio & Juan Castro, 1991. "Competencia de precios y cantidades en un duopolio de recursos naturales no renovables con diferenciación de producto," Investigaciones Economicas, Fundación SEPI, vol. 15(3), pages 555-573, September. [Downloadable!]
  20. Ivaldi, Marc & Jullien, Bruno & Rey, Patrick & Seabright, Paul & Tirole, Jean, 2003. "The Economics of Unilateral Effects," IDEI Working Papers 222, Institut d'Économie Industrielle (IDEI), Toulouse. [Downloadable!]
  21. Markus Pasche, 2002. "Heterogeneous Behavioral Rules in the Oligopolistic Case," Working Paper Series B 2002-01, Friedrich-Schiller-Universität Jena, Wirtschaftswissenschaftliche Fakultïät. [Downloadable!]
  22. Paolo Buccirossi, 2000. "Buyer’S Decisions And Price Competition," Working Papers 36, Sapienza University of Rome, Department of Public Economics. [Downloadable!]
Statistics
Access and download statistics

Did you know? Authors registered on the RePEc Author Service receive monthly emails with details about downloads and abstract views of their works.

This page was last updated on 2009-12-9.

This information is provided to you by IDEAS at the Department of Economics, College of Liberal Arts and Sciences, University of Connecticut using RePEc data on a server sponsored by the Society for Economic Dynamics.