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When Stackelberg and Cournot Equilibria Coincide

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Author Info
Luca Colombo
Paola Labrecciosa
Abstract

We compare two-stage Stackleberg with Cournot equilibrium under the assumption of quantity competition and homogeneous goods. We show that, when the curvature of the inverse market demand equals the total number of firms in the industry, the outcome of the two games coincides.

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Paper provided by Trinity College Dublin, Department of Economics in its series Trinity Economics Papers with number 20043.

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Date of creation: 2004
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Handle: RePEc:tcd:tcduee:20043

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