On Supply Function Equilibria in a Mixed Duopoly

Gutiérrez-Hita Carlos () and José Vicente-Pérez ()
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Gutiérrez-Hita Carlos: Departamento de Estudios Económicos y Financieros, Postal: Universidad Miguel Hernández,, 03202 Elche,, Spain
José Vicente-Pérez: Departamento Fundamentos Análisis Económico, Postal: Universidad de Alicante,, Campus de Sant Vicente del Raspeig,, 03080 Alicante,, Spain

No 18-1, QM&ET Working Papers from University of Alicante, D. Quantitative Methods and Economic Theory

Abstract: In this paper we present a mixed duopoly model of supply function competition under uncertainty with product differentiation. We find that, regardless the nature of product heterogeneity, the best response of the private firm always arises as strategic complement. Contrary to this, state-owned firm's best response arises either as strategic complement or substitute depending on the product heterogeneity. As a result of the ex post realization of the demand uncertainty, different equilibria are reached.

Keywords: Supply Function Equilibria; Mixed oligopoly; Differentiated products (search for similar items in EconPapers)
JEL-codes: D43 H42 L13 (search for similar items in EconPapers)
Pages: 11 pages
Date: 2018-05-28
New Economics Papers: this item is included in nep-bec, nep-com, nep-gth, nep-ind, nep-mic and nep-reg
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Persistent link: https://EconPapers.repec.org/RePEc:ris:qmetal:2018_001

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