A Comment on Yin, Xiangkang and Yew‐Kwang Ng: Quantity Precommitment and Bertrand Competition Yield Cournot Outcomes: A Case with Product Differentiation

Norbert Schulz

Australian Economic Papers, 2000, vol. 39, issue 1, 108-112

Abstract: This comment points out a gap in the proof of Theorem 2 contained in the paper by Yin and Ng. It is shown that the price reaction functions in their modelling approach are not continuous for all capacity subgames, contradicting the claim of Lemma 1. Possible remedies are suggested.

Date: 2000
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