Capacity precommitment, price competition and forward markets

José Luis Ferreira

Economics Letters, 2014, vol. 122, issue 2, 362-364

Abstract: The Cournot model can be seen as a reduced form of a more realistic model of capacity choice followed by price competition. We show that this is not the case if forward markets are added as their pro-competitive effects no longer hold.

Keywords: Capacity choice; Price competition; Forward markets (search for similar items in EconPapers)
Date: 2014
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Citations: View citations in EconPapers (3)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:ecolet:v:122:y:2014:i:2:p:362-364

DOI: 10.1016/j.econlet.2013.12.013

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