On the Dynamic Analysis of Cournot–Bertrand Equilibria

Aggey Semenov and Jean-Baptiste Tondji

Economics Letters, 2019, vol. 183, issue C, -

Abstract: We consider a setting where firms in the first stage invest in cost-reducing R&D. In the market stage, one firm sets a quantity, and another sets a price. We prove that the quantity-setting firm invests more in R&D, has a lower price, and produces higher quantity than the price-setting firm. We also consider welfare implications.

Keywords: Cournot–Bertrand model; Product differentiation; R&D; Welfare (search for similar items in EconPapers)
JEL-codes: D43 L13 O32 (search for similar items in EconPapers)
Date: 2019
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Citations: View citations in EconPapers (3)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:ecolet:v:183:y:2019:i:c:30

DOI: 10.1016/j.econlet.2019.108549

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