Comparing welfare and profit in quantity and price competition within Stackelberg mixed duopolies
Kosuke Hirose () and
Toshihiro Matsumura ()
Additional contact information
Kosuke Hirose: The University of Tokyo
Journal of Economics, 2019, vol. 126, issue 1, 75-93
Abstract We compare welfare and profits under price and quantity competition in Stackelberg mixed duopolies. Under public leadership, price competition always yields greater profits and welfare than quantity competition. By contrast, under private leadership, the result depends on the nationality of the private firm. When the private firm is domestic (foreign), welfare is greater under quantity (price) competition. However, private firms always earn more under price competition. Introducing the nonnegative profit constraint affects welfare ranking but not profit ranking. These results indicate that profit ranking is fairly robust to the time structure in Stackelberg mixed duopolies, but welfare ranking is not.
Keywords: Public leadership; Private leadership; Mixed markets; Cournot–Bertrand comparison (search for similar items in EconPapers)
JEL-codes: H42 H44 L13 L32 (search for similar items in EconPapers)
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1) Track citations by RSS feed
Downloads: (external link)
http://link.springer.com/10.1007/s00712-018-0603-7 Abstract (text/html)
Working Paper: Comparing Welfare and Profit in Quantity and Price Competition within Stackelberg Mixed Duopolies (2017)
This item may be available elsewhere in EconPapers: Search for items with the same title.
Export reference: BibTeX
RIS (EndNote, ProCite, RefMan)
Persistent link: https://EconPapers.repec.org/RePEc:kap:jeczfn:v:126:y:2019:i:1:d:10.1007_s00712-018-0603-7
Access Statistics for this article
Journal of Economics is currently edited by Giacomo Corneo
More articles in Journal of Economics from Springer
Bibliographic data for series maintained by Sonal Shukla ().