A note on price and quantity competition in differentiated oligopolies

• 成果类型: Article
• 署名作者: Häckner, J
• 署名单位: Stockholm University
• 刊物名称: JOURNAL OF ECONOMIC THEORY
• ISSN/ISSBN: 0022-0531
• DOI: 10.1006/jeth.2000.2654
• 发表日期: 2000
• 页码: 233-239
• 关键词: product differentiation; oligopoly; cournot; bertrand

摘要

In this note we show that the results developed in N. Singh and X. Vives (1984, Rand J. Econ, 15, 546-554) are sensitive to the duopoly assumption. If there are more than two firms, prices may be higher under price competition than under quantity competition. This will be the case if quality differences are large and goods are complements. If goods are substitutes, high-quality firms may earn higher profits under price competition than under quantity competition. Hence, it is not evident which kind of competition is more efficient. (C) 2000 Academic Press.