G-2004-49
Efficiency of Bertrand and Cournot under Precommitment
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We consider a differentiated duopoly where firms invest in research and development (R&D) to reduce their production cost. We show that if the firms play a one stage game, i.e., they choose R&D and price (in Bertrand game) or quantity (in Cournot game)at the same time, then the usual result stating that Bertrand competition is more efficient than Cournot competition still holds.
Paru en juin 2004 , 12 pages
Publication
jan. 2005
Efficiency of Bertrand and Cournot under precommitment
, et
Game Theory and Applications, 10, 31–38, 2005
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