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Combining the endogenous choice of timing and competition version in a mixed duopoly

Author

Listed:
  • Hong-Ren Din

    (TransWorld University)

  • Chia-Hung Sun

    (Soochow University)

Abstract

This paper extends Sun (Econ Lett 120:364–368, 2013) conceptcombining the endogenous choice of timing and competition version from a pure duopoly model to a mixed duopoly model. We find that choosing a price contract and playing in the first period make up a dominant strategy for the private firm. The public firm’s best response to the private firm’s dominant strategy is also to choose a price contract and play in the first period. As a result, simultaneous price competition is the unique equilibrium outcome, no matter whether the goods are substitutes or complements. Combining the findings in Sun (Econ Lett 120:364–368, 2013), we present that simultaneous price competition is the unique result with complement products, irrespective of whether for a pure duopoly model or for a mixed duopoly model.

Suggested Citation

  • Hong-Ren Din & Chia-Hung Sun, 2016. "Combining the endogenous choice of timing and competition version in a mixed duopoly," Journal of Economics, Springer, vol. 118(2), pages 141-166, June.
  • Handle: RePEc:kap:jeczfn:v:118:y:2016:i:2:d:10.1007_s00712-015-0470-4
    DOI: 10.1007/s00712-015-0470-4
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    References listed on IDEAS

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    Citations

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    Cited by:

    1. Yasuhiko Nakamura, 2019. "Combining the Endogenous Choice of the Timing of Setting the Levels of Strategic Contracts and Their Contents in a Managerial Mixed Duopoly," Journal of Industry, Competition and Trade, Springer, vol. 19(2), pages 235-261, June.
    2. Yasuhiko Nakamura, 2018. "Endogenous Market Structures in the Presence of a Socially Responsible Firm," Journal of Industry, Competition and Trade, Springer, vol. 18(3), pages 319-348, September.
    3. Junichi Haraguchi & Toshihiro Matsumura, 2020. "Endogenous public and private leadership with diverging social and private marginal costs," Manchester School, University of Manchester, vol. 88(5), pages 699-730, September.
    4. Amarjyoti Mahanta, 2019. "Endogenous strategic variable in a mixed duopoly," Journal of Economics, Springer, vol. 128(1), pages 47-65, September.
    5. Arturo García & Mariel Leal & Sang-Ho Lee, 2019. "Endogenous Timing with a Socially Responsible Firm," Korean Economic Review, Korean Economic Association, vol. 35, pages 345-370.
    6. Sang-Ho Lee & Timur K. Muminov, 2021. "Endogenous Timing of R&D Decisions and Privatization Policy with Research Spillovers," Journal of Industry, Competition and Trade, Springer, vol. 21(4), pages 505-525, December.
    7. Yasuhiko Nakamura, 2020. "Endogenously choosing the timing of setting strategic contracts’ levels and content in a managerial mixed duopoly with welfare-based and sales delegation contracts," International Review of Economics, Springer;Happiness Economics and Interpersonal Relations (HEIRS), vol. 67(3), pages 363-402, September.
    8. Sang-Ho Lee & Lili Xu, 2018. "Endogenous timing in private and mixed duopolies with emission taxes," Journal of Economics, Springer, vol. 124(2), pages 175-201, June.
    9. Yi Liu & Toshihiro Matsumura & Chenhang Zeng, 2021. "The relationship between privatization and corporate taxation policies," Journal of Economics, Springer, vol. 133(1), pages 85-101, June.
    10. Akio Kawasaki & Takao Ohkawa & Makoto Okamura, 2020. "Endogenous timing game in a mixed duopoly with partial foreign ownership and asymmetric increasing marginal costs," Australian Economic Papers, Wiley Blackwell, vol. 59(2), pages 71-87, June.
    11. Yasuhiko Nakamura, 2019. "Endogenous Choice of the Timing of Setting Incentive Parameters and the Strategic Contracts in a Managerial Mixed Duopoly with a Welfare-Based Delegation Contract and a Sales Delegation Contract," Journal of Industry, Competition and Trade, Springer, vol. 19(4), pages 679-737, December.
    12. Nakamura, Yasuhiko, 2019. "Combining the endogenous choice of the timing of setting incentive parameters and the contents of strategic contracts in a managerial mixed duopoly," International Review of Economics & Finance, Elsevier, vol. 59(C), pages 207-233.

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    More about this item

    Keywords

    Cournot competition; Bertrand competition; Endogenous competition version; Endogenous timing; Mixed duopoly;
    All these keywords.

    JEL classification:

    • L13 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Oligopoly and Other Imperfect Markets
    • D43 - Microeconomics - - Market Structure, Pricing, and Design - - - Oligopoly and Other Forms of Market Imperfection
    • D21 - Microeconomics - - Production and Organizations - - - Firm Behavior: Theory

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