QUANTITY PRECOMMITMENT AND BERTRAND COMPETITION YIELD COURNOT OUTCOMES: A CASE WITH PRODUCT DIFFERENTIATION* |
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Authors: | XIANGKANG YIN NG YEW-KWANG |
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Abstract: | Using a simple model of two-stage duopoly game, this paper shows that Bertrand-like price competition on a differentiated goods market, following a simultaneous endogenous choice of production capacity, yields the Cournot-like outcomes. |
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