EconPapers    
Economics at your fingertips  
 

Endogenous strategic variable in a mixed duopoly

Amarjyoti Mahanta ()
Additional contact information
Amarjyoti Mahanta: Indian Institute of Technology, Guwahati

Journal of Economics, 2019, vol. 128, issue 1, No 3, 47-65

Abstract: Abstract In this paper we endogenize the choice of strategic variables in a mixed duopoly market in which each firm produces a homogeneous product with a strictly increasing convex cost function. This allows us to endogenously determine the type of competition in a mixed duopoly. We get the interesting result that price competition is a dominant strategy for each firm in a mixed duopoly. The firms randomize among the prices belonging to the equilibrium range of price in Bertrand competition. It is different from the outcome in a simple duopoly market where both price competition and quantity competition are pure strategy Nash equilibrium. Thus, this paper establishes that the presence of a public firm influences the kind of competition that takes place in a duopoly market.

Keywords: Mixed duopoly; Endogenous competition; Bertrand competition; Cournot competition (search for similar items in EconPapers)
JEL-codes: D21 D43 (search for similar items in EconPapers)
Date: 2019
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/s00712-018-0641-1 Abstract (text/html)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:kap:jeczfn:v:128:y:2019:i:1:d:10.1007_s00712-018-0641-1

DOI: 10.1007/s00712-018-0641-1

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 ().

 
Page updated 2020-06-20
Handle: RePEc:kap:jeczfn:v:128:y:2019:i:1:d:10.1007_s00712-018-0641-1