Price-quantity competition with varying toughness

Claude d'Aspremont and Rodolphe Dos Santos Ferreira

Post-Print from HAL

Abstract: For an industry producing a single homogeneous good, we define and characterize the concept of oligopolistic equilibrium, allowing for a parameterized continuum of regimes with varying competitive toughness. This parameterization will appear to be equivalent to the one used in the empirical literature. The Cournot and the competitive outcomes coincide, respectively, with the softest and the toughest oligopolistic equilibrium outcome. The concept offers an alternative to the conjectural variations approach with better foundations. It can be viewed as a canonical description of oligopolistic behavior which can receive different theoretical justifications and provide a convenient tool for modeling purposes. Two illustrative cases (linear and isoelastic demands) are developed and the possibility of endogenizing (strategically) the choice of competitive toughness by the firms is examined.

Keywords: Oligopolistic equilibrium; Competitive toughness; Price–quantity competition; Market share; Market size; Kinked demand; Cournot–Bertrand debate (search for similar items in EconPapers)
Date: 2006
References: Add references at CitEc
Citations:

Published in Games and Economic Behavior, 2006, 65 (1), pp.62-82. ⟨10.1016/j.geb.2008.03.001⟩

There are no downloads for this item, see the EconPapers FAQ for hints about obtaining it.

Related works:
Journal Article: Price-quantity competition with varying toughness (2009)
Working Paper: Price-quantity competition with varying toughness (2009)
Working Paper: Price-quantity competition with varying toughness (2004)
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:hal:journl:hal-00279265

DOI: 10.1016/j.geb.2008.03.001

Access Statistics for this paper

More papers in Post-Print from HAL
Bibliographic data for series maintained by CCSD ().