Differentiated-products Cournot attributes higher markups than Bertrand–Nash

Lorenzo Magnolfi, Daniel Quint, Christopher Sullivan and Sarah Waldfogel

Economics Letters, 2022, vol. 219, issue C

Abstract: In a differentiated products setting when costs are unobserved, the Cournot model of quantity-setting competition attributes a greater share of prices to markups than does the Bertrand–Nash model of price-setting, leading to lower estimates of marginal costs.

Keywords: Cournot competition; Bertrand competition; Markups (search for similar items in EconPapers)
JEL-codes: L1 (search for similar items in EconPapers)
Date: 2022
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (2)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:ecolet:v:219:y:2022:i:c:s0165176522002944

DOI: 10.1016/j.econlet.2022.110804

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