Abstract
A noncooperative duopoly game is formulated in which the quantity player sells its entire amount (up to consumer demand) while the price player supplies residual demand; both firms transact at the same price. Depending on the ordering, two-stage subgame perfect equilibria are equivalent to simultaneous price and quantity Nash equilibria or include also the Stackelberg equilibrium. In any case, a firm prefers to be the quantity player.
| Original language | English (US) |
|---|---|
| Pages (from-to) | 417-422 |
| Number of pages | 6 |
| Journal | Economics Letters |
| Volume | 38 |
| Issue number | 4 |
| DOIs | |
| State | Published - Apr 1992 |
Bibliographical note
Funding Information:Correspondence to: Professor Beth Allen, Department Philadelphia, PA 19104-6297, USA * This research was supported by NSF Grant SES88-21442. The manuscript Social and Economic Research at Osaka University, supported by a grant about price and quantity games as a result of supervising an undergraduate
Copyright:
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