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Does timing of decisions in a mixed duopoly matter?

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  • Balogh, Tamás L.
  • Tasnádi, Attila

Abstract

We determine the endogenous order of moves in a mixed price-setting duopoly. In contrast to the existing literature on mixed oligopolies we establish the payoff equivalence of the games with an exogenously given order of moves. Hence, it does not matter whether one becomes a leader or a follower. We also establish that replacing a private firm by a public firm in the standard Bertrand-Edgeworth game with capacity constraints increases social welfare and that a pure-strategy equilibrium always exists.

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Bibliographic Info

Paper provided by University Library of Munich, Germany in its series MPRA Paper with number 30993.

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Date of creation: 19 May 2011
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Handle: RePEc:pra:mprapa:30993

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Keywords: Bertrand-Edgeworth; mixed duopoly; timing games;

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Cited by:
  1. Bakó, Barna & Tasnádi, Attila, 2014. "The Kreps-Scheinkman game in mixed duopolies," MPRA Paper 52986, University Library of Munich, Germany.

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