On the Comparison of Price and Quantity Competition : What Type of Competition is most preferred?

Language: English

Published by LAP LAMBERT Academic Publishing, 2011

3844317287 / 9783844317282

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nach der Bestellung gedruckt Neuware - Printed after ordering - In a monopoly, the equilibrium outcome is the same no matter if firms compete on price or on quantity. However, lots of firms have visible rivals with whom strategic interaction is a fact of life. This is known as imperfect competition. With imperfect competition, competing on price will lead to a different outcome than competing on quantity. Each firm needs to analyze what strategy, price or quantity, brings the highest profit for the firm and the highest surplus for the consumer. In order to compare and contrast price and quantity competition, two classical models of duopoly, the Cournot and the Bertrand model, are introduced. These two models can be analyzed according to different setups. Homogeneous and heterogeneous goods are considered. Also, it is important to distinguish between simultaneous and sequential move of the firms in their strategic interaction. The sequential choosing of actions makes the game dynamic and is known as the Stackelberg game. Furthermore, it is necessary to distinguish between exogenous and endogenous moving time decision of the firms. This analysis should be especially useful to students and researchers in Microeconomics.…

Seller Inventory # 9783844317282

Title
On the Comparison of Price and Quantity Competition : What Type of Competition is most preferred?
Author
Jill Thinnes
Publisher
LAP LAMBERT Academic Publishing
Publication year
2011
Condition
Neu
Binding
Taschenbuch
Language
English
ISBN 10
3844317287
ISBN 13
9783844317282
Item weight
119 grams
Dimensions
220x150x5 mm

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