IDEAS home Printed from https://ideas.repec.org/p/kud/kuieci/1999-11.html
   My bibliography  Save this paper

Kreps And Scheinkman With Product Differentiation: An Expository Note

Author

Listed:
  • Stephen Martin

    (Institute of Economics, University of Copenhagen)

Abstract

Kreps and Scheinkman´s (1983) celebrated result is that in a two-stage model of a market with homogeneous products in which firms noncooperatively pick capacities in the first stage and set prices in the second stage, the equilibrium outcome is that of a one-shot Cournot game. This note derives capacity reaction functions for the first stage and extends the Kreps and Scheinkman result to the case of differentiated products.

Suggested Citation

  • Stephen Martin, 1999. "Kreps And Scheinkman With Product Differentiation: An Expository Note," CIE Discussion Papers 1999-11, University of Copenhagen. Department of Economics. Centre for Industrial Economics.
  • Handle: RePEc:kud:kuieci:1999-11
    as

    Download full text from publisher

    File URL: http://www.econ.ku.dk/cie/dp/dp_1997-1999/1999-11.pdf/
    Download Restriction: no

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Hamilton, Stephen F. & Bontems, Philippe & Lepore, Jason, 2013. "Oligopoly Intermediation, Relative Rivalry, and the Mode of Competition," IDEI Working Papers 818, Institut d'Économie Industrielle (IDEI), Toulouse.
    2. Vital Anderhub & Werner Güth & Ulrich Kamecke & Hans-Theo Normann, 2003. "Capacity Choices and Price Competition in Experimental Markets," Experimental Economics, Springer;Economic Science Association, vol. 6(1), pages 27-52, June.
    3. Christiaan Behrens & Mark Lijesen, 2012. "Capacity Choice under Uncertainty with Product Differentiation," Tinbergen Institute Discussion Papers 12-113/VIII, Tinbergen Institute, revised 20 Feb 2014.

    More about this item

    Keywords

    Cournot model; Bertrand model; Kreps and Scheinkman model; product differentiation;

    JEL classification:

    • D43 - Microeconomics - - Market Structure, Pricing, and Design - - - Oligopoly and Other Forms of Market Imperfection
    • L13 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Oligopoly and Other Imperfect Markets

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:kud:kuieci:1999-11. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Thomas Hoffmann). General contact details of provider: http://edirc.repec.org/data/ciekudk.html .

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.