A note on quantity precommitment, cournot outcome and asymmetric capacity costs
This paper extends Kreps and Scheinkman's 1983 result, which shows 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.
Volume (Year): 29 (2009)
Issue (Month): 1 ()
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- Beth Allen & Raymond Deneckere & Tom Faith & Dan Kovenock, 1994.
"Capacity Precommitment as a Barrier to Entry:A Bertrand-Edgeworth Approach,"
9411002, EconWPA, revised 14 Nov 1994.
- Dan Kovenock & Raymond Deneckere & Tom Faith & Beth Allen, 2000. "Capacity precommitment as a barrier to entry: A Bertrand-Edgeworth approach," Economic Theory, Springer, vol. 15(3), pages 501-530.
- Allen, B. & Deneckere, R. & Faith, T. & Kovenock, D., 1994. "Capacity Precommitment as a Barrier to Entry: A Bertrand- Engeworth Approach," Papers 9483, Tilburg - Center for Economic Research.
- Allen, B. & Deneckere, R. & Faith, T. & Kovenock, D., 1994. "Capacity Precommitment as a Barrier to Entry: A Bertrand-Edgeworth Approach," Purdue University Economics Working Papers 1062, Purdue University, Department of Economics.
- Beth Allen & Raymond Deneckere & Tom Faith & Dan Kovenock, 1995. "Capacity precommitment as a barrier to entry: a Bertrand-Edgeworth approach," Staff Report 187, Federal Reserve Bank of Minneapolis.
- Paul Madden, 1998. "Elastic demand, sunk costs and the Kreps-Scheinkman extension of the Cournot model," Economic Theory, Springer, vol. 12(1), pages 199-212.
- Dan Kovenock & Raymond J. Deneckere, 1996. "Bertrand-Edgeworth duopoly with unit cost asymmetry (*)," Economic Theory, Springer, vol. 8(1), pages 1-25.
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