Duopoly price competition with limited capacity

dc.contributor.authorBërdëllima, Arian
dc.date.accessioned2021-04-08T15:50:10Z
dc.date.available2021-04-08T15:50:10Z
dc.date.issued2021-02-11
dc.description.abstractWe study a variation of the duopoly model by Kreps and Scheinkman (1983). Firms limited by their capacity of production engage in a two stage game. In the first stage they commit to levels of production not exceeding their capacities which are then made common knowledge. In the second stage after production has taken place firms simultane- ously compete in prices. Solution of this sequential game shows that the unique Cournot equilibrium outcome as in Kreps and Scheinkman is not always guaranteed. However the Cournot outcome is still robust in the sense that given sufficiently large capacities this equilibrium holds. If capacities are sufficiently small, firms decide to produce at their full capacity and set a price which clears the market at the given level of output.en
dc.description.sponsorshipTU Berlin, Open-Access-Mittel – 2020en
dc.identifier.eissn2196-1093
dc.identifier.issn2196-1085
dc.identifier.urihttps://depositonce.tu-berlin.de/handle/11303/12974
dc.identifier.urihttp://dx.doi.org/10.14279/depositonce-11769
dc.language.isoen
dc.rights.urihttps://creativecommons.org/licenses/by/4.0/
dc.subject.ddc510 Mathematiken
dc.subject.othercapacityen
dc.subject.otherCournoten
dc.subject.otherduopoly competitionen
dc.subject.otherNash equilibriumen
dc.subject.othersequential gameen
dc.titleDuopoly price competition with limited capacityen
dc.typeArticleen
dc.type.versionpublishedVersionen
dcterms.bibliographicCitation.doi10.1007/s40505-020-00198-1en
dcterms.bibliographicCitation.journaltitleEconomic Theory Bulletinen
dcterms.bibliographicCitation.originalpublishernameSpringerNatureen
dcterms.bibliographicCitation.originalpublisherplaceLondon [u.a.]en
dcterms.bibliographicCitation.pageend154en
dcterms.bibliographicCitation.pagestart143en
dcterms.bibliographicCitation.volume9en
tub.accessrights.dnbfreeen
tub.affiliationFak. 2 Mathematik und Naturwissenschaften>Inst. Mathematik>FG Angewandte Mathematikde
tub.affiliation.facultyFak. 2 Mathematik und Naturwissenschaftende
tub.affiliation.groupFG Angewandte Mathematikde
tub.affiliation.instituteInst. Mathematikde
tub.publisher.universityorinstitutionTechnische Universität Berlinen
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