TITLE

COURNOT-NASH AND BERTRAND-NASH EQUILIBRIA FOR A HETEROGENEOUS DUOPOLY OF DIFFERENTIATED PRODUCTS

AUTHOR(S)
Gorbachuk, V. M.
PUB. DATE
January 2010
SOURCE
Cybernetics & Systems Analysis;Jan2010, Vol. 46 Issue 1, p25
SOURCE TYPE
Academic Journal
DOC. TYPE
Article
ABSTRACT
Under Cournot-Nash and Bertrand-Nash equilibria, analytical expressions are found for outputs, prices, and profits in the case when all duopoly parameters of differentiated products are different. It is shown that the signs of differences between such outputs, prices, and profits depend on the complementarity or substitutability of products. The concepts of exogenous, endogenous, and asymmetric differentiated products are introduced.
ACCESSION #
48362275

 

Related Articles

  • Duopoly Pricing Under 'Private Knowledge' of Product Differentiation. Ulibarri, Carlos // Journal of Industry, Competition & Trade;Sep2012, Vol. 12 Issue 3, p265 

    This note studies price decisions in a duopoly industry where firms have private information over the degree of product differentiation (product-type). A Bayesian-Nash price solution is derived assuming firms maximize their 'certainty-equivalent' profit levels. The comparative-statics indicate...

  • Dynamic Pricing Based on Strategic Consumers and Substitutes in a Duopoly Setting. Gongbing Bi; Lechi Li; Feng Yang; Liang Liang // Discrete Dynamics in Nature & Society;2014, p1 

    Based on the rational strategic consumers, we construct a dynamic game to build a two-period dynamic pricing model for two brands of substitutes which are sold by duopoly The solution concept of the dynamic game is Nash equilibrium. In our model, consumers have been clearly segmented into...

  • Price Leadership in a Duopoly With Capacity COnstraints and Product Differentiation. Furth, Dave; Kovenock, Dan // Journal of Economics;1993, Vol. 57 Issue 1, p1 

    This paper analyzes Stackelberg price leadership in a duopoly in which firms are capacity constrained and products are imperfect substitutes. Assuming symmetric substitutes, linear demand, and efficient rationing, we characterize the equilibria with an exogenously specified leader. Using the...

  • A generalized framework for endogenous timing in duopoly games and an application to price-quantity competition. Zhu, Quan-tao; Wu, Xin-wang; Sun, Laixiang // Journal of Economics;Jun2014, Vol. 112 Issue 2, p137 

    This paper extends the analysis of duopoly market by distinguishing two types of competition: (i) the basic form of competition where each firm is unrestricted in its choice of price and quantity and (ii) the non-basic form of competition where firms' strategic choices over price and quantity...

  • Capacity Choice in a Price-Setting Mixed Duopoly: The Relative Performance Approach. Yasuhiko Nakamura; Masayuki Saito // Modern Economy;Apr2013, Vol. 4 Issue 4, p273 

    This paper analyzes the capacity choice issue under a price-setting mixed duopoly with differentiated goods, when the objective function of the private firm is its relative profit. In this paper, we show that the public firm chooses over-capacity irrespective of the degree of product...

  • Effects of capacity constraints on mixed duopoly. Nie, Pu-yan // Journal of Economics;Jul2014, Vol. 112 Issue 3, p283 

    This paper highlights the mixed duopoly substitutable product with an upstream input subject to capacity constraints. The effects of capacity constraints on the mixed economy are captured. Firstly, the degree of public ownership improves the firm size difference, the price difference, the price...

  • Multiproduct Price Optimization and Competition Under the Nested Logit Model with Product-Differentiated Price Sensitivities. Gallego, Guillermo; Ruxian Wang // Operations Research;Mar/Apr2014, Vol. 62 Issue 2, p450 

    We study firms that sell multiple substitutable products and customers whose purchase behavior follows a nested logit model, of which the multinomial logit model is a special case. Customers make purchasing decisions sequentially under the nested logit model: they first select a nest of products...

  • Smarter than Others? Conjectures in Lowest Unique Bid Auctions. Zhou, Cancan; Dong, Hongguang; Hu, Rui; Chen, Qinghua // PLoS ONE;Apr2015, Vol. 10 Issue 4, p1 

    Research concerning various types of auctions, such as English auctions, Dutch auctions, highest-price sealed-bid auctions, and second-price sealed-bid auctions, is always a topic of considerable interest in interdisciplinary fields. The type of auction, known as a lowest unique bid auction...

  • Price Competition and Consumer Externalities in a Vertically Differentiated Duopoly with Information Disparities. Cavaliere, Alberto // Journal of Economics;Oct2005, Vol. 86 Issue 1, p29 

    In this paper, we extend the model of vertical product differentiation to consider information disparities about quality differences and their effects on price competition. If uninformed consumers overestimate vertical differentiation, asymmetric information is a source of market power and...

Share

Read the Article

Courtesy of THE LIBRARY OF VIRGINIA

Sorry, but this item is not currently available from your library.

Try another library?
Sign out of this library

Other Topics