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Quantity precommitment and Bertrand competition yield Cournot outcomes: a case with product differentiation
journal contribution
posted on 1997-06-01, 00:00 authored by Xiangkang YinXiangkang Yin, Ng Yew-KwangUsing a simple model of two‐stage duopoly game, this paper shows that Bertrand‐like price competition on a differentiated goods market, following a simultaneous endogenous choice of production capacity, yields the Cournot‐like outcomes.