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Quantity precommitment, Cournot outcome and asymmetric capacity costs

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  • Nicolas Gruyer

    ()
    (LEEA (air transport economics laboratory), ENAC)

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    Abstract

    This note extends Kreps and Scheinkman's result -showing that a production capacity choice stage followed by price competition yields the same outcome as a Cournot game- to a setting where capacity costs are asymmetric.

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    File URL: http://gruyern.free.fr/wpaper/gruyerKSsub.pdf
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    Bibliographic Info

    Paper provided by LEEA (air transport economics laboratory), ENAC (french national civil aviation school) in its series Economics Working Papers with number 04.

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    Length: 8 pages
    Date of creation: 11 Aug 2006
    Date of revision:
    Handle: RePEc:enc:abcdef:ks4

    Note: Type of Document - pdf; pages: 8.
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    Related research

    Keywords: capacity; Bertrand competition; Kreps-Scheinkman; asymmetric costs.;

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    1. Gabszewicz, J.J. & Poddar, S., . "Demand fluctuations and capacity utilization under duopoly," CORE Discussion Papers RP -1269, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE).
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