On the efficiency of Bertrand and Cournot equilibria with product differentation
X Vives - Journal of Economic Theory, 1985 - Elsevier
In a differentiated products setting with n varieties it is shown, under certain regularity
conditions, that if the demand structure is symmetric and Bertrand and Cournot equilibria are
unique then prices and profits are larger and quantities smaller in Cournot than in Bertrand
competition and, as n grows, both equilibria converge to the efficient outcome at a rate of at
least 1 n. If Bertrand reaction functions slope upwards and are continuous then, even with an
asymmetric demand structure, given any Cournot equilibrium price vector one can find a …
conditions, that if the demand structure is symmetric and Bertrand and Cournot equilibria are
unique then prices and profits are larger and quantities smaller in Cournot than in Bertrand
competition and, as n grows, both equilibria converge to the efficient outcome at a rate of at
least 1 n. If Bertrand reaction functions slope upwards and are continuous then, even with an
asymmetric demand structure, given any Cournot equilibrium price vector one can find a …
以上显示的是最相近的搜索结果。 查看全部搜索结果