Quantity versus price in a homogeneous product duopoly

Article Abstract:

Choosing quantities over prices as strategic variables may not be the dominant strategy even in a homogeneous product setting. A two-stage game between firms with symmetric costs where one firm can select either a quantity or a price is examined to settle the debate on whether firms should choose quantity or price as their strategic variable. In such a game, a two Nash equilibria where either both play in quantities or both play in prices is possible. A Nash equilibrium where one firm chooses price and the other quantity is not possible. Both firms opting for quantity is always a Nash equilibrium, while both choosing prices is a Nash equilibrium only in certain cases.

Analysis, Game theory, Equilibrium (Economics)

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Upward-sloping reaction functions under quantity competition in mixed oligopolies

Article Abstract:

A mixed oligopoly where a public firm competes with private companies results in reaction functions that deviate from the normal. This case is characterized by a concave demand function and an upward-sloping reaction function which occurs when the public firm considers its profit as more important than those of the private sector while pursuing social welfare functions.

Oligopolies

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A note on auction quotas with a foreign duopoly

Article Abstract:

Ways of maintaining the welfare of a country importing goods from a foreign duopoly are presented. It is suggested that a country importing goods from a foreign duopoly can improve their welfare by imposing a free trade quantity quota on the goods.

Methods, Management, Profit, Profits, Imports

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