search query: @author Benoit, J-B. / total: 1
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| Author: | Benoit, J-B. Krishna, V. |
| Title: | Dynamic duopoly : Prices and quantities. |
| Journal: | Review of Economic Studies
1987 : JAN, VOL. 54:177, p. 23-35 |
| Index terms: | DYNAMIC MODELS CAPACITY QUANTITY PRICES OLIGOPOLY |
| Language: | eng |
| Abstract: | A dynamic model of duopoly is studied in which firms choose both prices and quantities. If quantity - capacity - choices are relatively inflexible firms generally carry excess - idle - capacity in equilibrium. Because of this enforcement cost,firms are unable to achieve monopoly levels. This contrasts with models in which firms compete in either prices or quantities alone. On the other hand,if capacities are flexible,firms may be able to sustain monopoly behavior. The analysis is dynamic but not in the sense of a strict repeated game. While many equilibria emerge,in contrast to a repeated model,not everything is possible, all equilibria share interesting structural features. |
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