Kreps & Scheinkman with Product Differentiation

Stephen Martin ()

Frontiers of Economics in China-Selected Publications from Chinese Universities, 2019, vol. 14, issue 2, 203-219

Abstract: Kreps and Scheinkman (1983)'s celebrated result is that in a two-stage model of a market with homogeneous products in which firms noncooperatively pick capacities in the first stage and set prices in the second stage, the equilibrium outcome is that of a one-shot Cournot game. This note derives capacity best response functions for the first stage and extends the Kreps and Scheinkman result to the case of differentiated products.

Keywords: Kreps and Scheinkman; capacity choice; Cournot; oligopoly; product differentiation (search for similar items in EconPapers)
JEL-codes: D21 D43 L12 L13 (search for similar items in EconPapers)
Date: 2019
References: Add references at CitEc
Citations: View citations in EconPapers (1)

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Persistent link: https://EconPapers.repec.org/RePEc:fec:journl:v:14:y:2019:i:2:p:203-219

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