THE EQUIVALENCE OF BERTRAND EQUILIBRIUM IN A DIFFERENTIATED DUOPOLY AND COURNOT EQUILIBRIUM IN A DIFFERENTIATED OLIGOPOLY

  • DongJoon LEE Nagoya University of Commerce and Business, Japan,
  • Sangheon HAN Nagoya University of Commerce and Business, Japan
  • Yuji ONO Nagoya University of Commerce and Business, Japan
  • Joonghwa OH Nagoya University of Commerce and Business, Japan
DOI: https://doi.org/10.14505/tpref.v7.2(14).03

Abstract

This paper examines whether Bertrand equilibrium in a differentiated duopoly can be duplicated with Cournot competition or not. We show that the degree of product differentiation plays an important role in the duality between those equilibria. Our main claims are two. One is that there exists a unique duality condition that satisfies the equivalence between Bertrand and Cournot equilibrium irrespectively of market structures. The other is that the number of firms of Cournot competition that satisfies Bertrand equilibrium increases with the degree of product differentiation.

References

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Published
2016-12-31
How to Cite
LEE, DongJoon et al. THE EQUIVALENCE OF BERTRAND EQUILIBRIUM IN A DIFFERENTIATED DUOPOLY AND COURNOT EQUILIBRIUM IN A DIFFERENTIATED OLIGOPOLY. Theoretical and Practical Research in Economic Fields, [S.l.], v. 7, n. 2, p. 146-154, dec. 2016. ISSN 2068-7710. Available at: <https://journals.aserspublishing.eu/tpref/article/view/1263>. Date accessed: 26 apr. 2024. doi: https://doi.org/10.14505/tpref.v7.2(14).03.
Citation Formats
Issue
Vol 7 No 2 (2016): TPREF, Volume VII, Issue 2(14), Winter 2016
Section
Articles

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