On the Strategic Importance of Prices versus Quantities

James Friedman

RAND Journal of Economics, 1988, vol. 19, issue 4, 607-622

Abstract: In this article I investigate three single-shot models of differentiated-products oligopoly. In each model firms choose both output and price. The demand, cost, and spillover demand specifications are quite general, and there are three main results. First, with simultaneous choice there is no pure-strategy noncooperative equilibrium. Second, with output chosen first and announced to all firms before the choice of price, equilibrium sometimes exists, and when it does, it is the same as in a quantity-only model. Third, with price chosen and announced first, equilibrium always exists and is the same as in a price-only model.

Date: 1988
References: Add references at CitEc
Citations: View citations in EconPapers (52)

Downloads: (external link)
http://links.jstor.org/sici?sici=0741-6261%2819882 ... O%3B2-B&origin=repec full text (application/pdf)
Access to full text is restricted to JSTOR subscribers. See http://www.jstor.org for details.

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:rje:randje:v:19:y:1988:i:winter:p:607-622

Ordering information: This journal article can be ordered from
https://editorialexp ... i-bin/rje_online.cgi

Access Statistics for this article

More articles in RAND Journal of Economics from The RAND Corporation
Bibliographic data for series maintained by ().