Endogenous Timing and Strategic Choice
Author | : Victor J. Tremblay |
Publisher | : |
Total Pages | : 0 |
Release | : 2013 |
ISBN-10 | : OCLC:1376023243 |
ISBN-13 | : |
Rating | : 4/5 ( Downloads) |
Download or read book Endogenous Timing and Strategic Choice written by Victor J. Tremblay and published by . This book was released on 2013 with total page 0 pages. Available in PDF, EPUB and Kindle. Book excerpt: Cournot establishes a Nash equilibrium to a duopoly game under output competition; Bertrand finds a different Nash equilibrium under price competition. Both treat the strategic choice variable (output versus price) and the timing of play as exogenous. We investigate Cournot-Bertrand models where one firm competes in output and the other competes in price in both static and dynamic settings. We also develop a general model where both the timing of play and the strategic choice variables are endogenous. Consistent with the conduct of Honda and Scion, we show that Cournot-Bertrand behaviour can be a Nash equilibrium outcome.