Carlos Osório () (Departamento de Gestão e Economia, Universidade da Beira Interior) Paulo Maçãs () (Departamento de Gestão e Economia, Universidade da Beira Interior) João Leitão () (Departamento de Gestão e Economia, Universidade da Beira Interior)
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This paper aims at the comparison between Cournot and Stackelberg pricings for a durable good, assuming time as a continuous variable. It concludes that the Cournot's strategic conduct is better for the duopoly producers than the Stackelberg's leader. This conclusion, however, does not prevail for the first stage, although it does for the remaining. Whether one of the producers acts as a leader, the satellite rival will respond in such a way that the price approaches, in a very short time, the marginal cost. For the remaining stages, but the first one, irrespective of the risk level and the strategic conduct taken, Cournot's model implies a stable equilibrium, based on higher Cournot's profits than Stackelberg's profits.
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Carl Davidson & Raymond Deneckere, 1984.
"Excess Capacity and Collusion,"
Discussion Papers
675, Northwestern University, Center for Mathematical Studies in Economics and Management Science.
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Davidson, Carl & Deneckere, Raymond J, 1990.
"Excess Capacity and Collusion,"
International Economic Review,
Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 31(3), pages 521-41, August.
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