Download This PaperOn the Dynamic Analysis of Cournot-Bertrand Equilibria
Semenov, A., & Tondji, J. B. (2019). On the dynamic analysis of Cournot–Bertrand equilibria. Economics Letters, 183, 108549.
8 Pages Posted: 9 Jun 2019 Last revised: 27 Jul 2021
Date Written: May 22, 2019
Abstract
We consider a setting where firms in the first stage invest in cost-reducing R&D. In the market stage, one fi rm sets a quantity, and another sets a price. We prove that the quantity-setting fi rm invests more in R&D, has a lower price, and produces higher quantity than the price-setting fi rm. We also consider welfare implications.
Keywords: Cournot-Bertrand Model, Product Differentiation, R&D, Welfare
JEL Classification: D43, L13, O32
Suggested Citation: Suggested Citation
Semenov, Aggey and Tondji, Jean-Baptiste, On the Dynamic Analysis of Cournot-Bertrand Equilibria (May 22, 2019). Semenov, A., & Tondji, J. B. (2019). On the dynamic analysis of Cournot–Bertrand equilibria. Economics Letters, 183, 108549., Available at SSRN: https://ssrn.com/abstract=3392443 or http://dx.doi.org/10.2139/ssrn.3392443
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