Kreps And Scheinkman With Product Differentiation: An Expository Note
AbstractKreps and Scheinkman´s (1983) celebrated result is that in a two-stage model of a market with homogeneous products in which firms noncooperatively pick capacities in the first stage and set prices in the second stage, the equilibrium outcome is that of a one-shot Cournot game. This note derives capacity reaction functions for the first stage and extends the Kreps and Scheinkman result to the case of differentiated products.
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Bibliographic InfoPaper provided by University of Copenhagen. Department of Economics. Centre for Industrial Economics in its series CIE Discussion Papers with number 1999-11.
Length: 76 pages
Date of creation: Sep 1999
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Cournot model; Bertrand model; Kreps and Scheinkman model; product differentiation;
Find related papers by JEL classification:
- 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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- Anderhub, Vital & Güth, Werner & Kamecke, Ulrich & Normann, Hans-Theo, 2001.
"Capacity choices and price competition in experimental markets,"
SFB 373 Discussion Papers
2001,10, Humboldt University of Berlin, Interdisciplinary Research Project 373: Quantification and Simulation of Economic Processes.
- Vital Anderhub & Werner GÃ¼th & Ulrich Kamecke & Hans-Theo Normann, 2003. "Capacity Choices and Price Competition in Experimental Markets," Experimental Economics, Springer, vol. 6(1), pages 27-52, June.
- Anderhub, V. & Guth, W. & Kamecke, U. & Normann, H.T., 2001. "Capacity Cjoices and Price Competition in Experimental Market," Papers 179, Flinders of South Australia - Discipline of Economics.
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