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A note on quantity precommitment, Cournot outcome and asymmetric capacity costs

Author

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  • Nicolas Gruyer

    (LEEA - ENAC - Laboratoire d'Economie et d'Econométrie de l'Aérien - ENAC - Ecole Nationale de l'Aviation Civile)

Abstract

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.

Suggested Citation

  • Nicolas Gruyer, 2009. "A note on quantity precommitment, Cournot outcome and asymmetric capacity costs," Post-Print hal-01021567, HAL.
    • Handle: RePEc:hal:journl:hal-01021567
    Note: View the original document on HAL open archive server: https://enac.hal.science/hal-01021567
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    Cited by:

    1. Wu, Xin-wang & Zhu, Quan-tao & Sun, Laixiang, 2012. "On equivalence between Cournot competition and the Kreps–Scheinkman game," International Journal of Industrial Organization, Elsevier, vol. 30(1), pages 116-125.
    2. Lepore Jason J, 2009. "Consumer Rationing and the Cournot Outcome," The B.E. Journal of Theoretical Economics, De Gruyter, vol. 9(1), pages 1-46, September.

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