A Quantity-Setting Mixed Duopoly with Inventory Investment as a Coordination Device

Kazuhiro Ohnishi
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Kazuhiro Ohnishi: Osaka University and Institute for Basic Economic Science

Annals of Economics and Finance, 2011, vol. 12, issue 1, 109-119

Abstract: This paper examines a two-period mixed market model in which a welfaremaximizing public firm and a profit-maximizing private firm can use inventory investment as a strategic device. It is then demonstrated that the equilibrium in the second period coincides with the Stackelberg solution where the private firm is the leader, and at equilibrium, both social welfare and the private firm¡¯s profit are higher than in the game without inventory.

Keywords: Mixed duopoly; Public firm; Private firm; Inventory investment (search for similar items in EconPapers)
JEL-codes: C72 D21 H42 L13 L32 (search for similar items in EconPapers)
Date: 2011
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Citations: View citations in EconPapers (2)

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Persistent link: https://EconPapers.repec.org/RePEc:cuf:journl:y:2011:v:12:i:1:p:109-119

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