Cournot–Bertrand comparison in a mixed oligopoly

详细信息    查看全文

• 作者：Junichi Haraguchi ; Toshihiro Matsumura
• 关键词：Cournot ; Bertrand ; Mixed markets ; Differentiated products ; Oligopoly
• 刊名：Journal of Economics
• 出版年：2016
• 出版时间：March 2016
• 年：2016
• 卷：117
• 期：2
• 页码：117-136
• 全文大小：772 KB
• 参考文献：Bose A, Gupta B (2013) Mixed markets in bilateral monopoly. J Econ 110(2):141–164CrossRef
  Brandão A, Castro S (2007) State-owned enterprises as indirect instruments of entry regulation. J Econ 92(3):263–274CrossRef
  Cato S, Matsumura T (2012) Long-run effects of foreign penetration on privatization policies. J Inst Theor Econ 168(3):444–454CrossRef
  Cato S, Matsumura T (2013) Long-run effects of tax policies in a mixed market. FinanzArchiv 69(2):215–240CrossRef
  Cheng L (1985) Comparing Bertrand and Cournot equilibria: a geometric approach. RAND J Econ 16(1):146–152CrossRef
  Chirco A, Colombo C, Scrimitore M (2014) Organizational structure and the choice of price versus quantity in a mixed duopoly. Jpn Econ Rev 65(4):521–542CrossRef
  De Fraja G, Delbono F (1989) Alternative strategies of a public enterprise in oligopoly. Oxf Econ Pap 41(2):302–311
  Dixit AK (1979) A model of duopoly suggesting a theory of entry barriers. Bell J Econ 10(1):20–32CrossRef
  Fjell K, Pal D (1996) A mixed oligopoly in the presence of foreign private firms. Can J Econ 29(3):737–743CrossRef
  Fujiwara K (2007) Partial privatization in a differentiated mixed oligopoly. J Econ 92(1):51–65CrossRef
  Ghosh A, Mitra M (2010) Comparing Bertrand and Cournot in mixed markets. Econ Lett 109(2):72–74CrossRef
  Ghosh A, Mitra M (2014) Reversal of Bertrand–Cournot rankings in the presence of welfare concerns. J Inst Theor Econ 170(3):496–519CrossRef
  Ghosh A, Sen P (2012) Privatization in a small open economy with imperfect competition. J Public Econ Theory 14(3):441–471CrossRef
  Ghosh A, Mitra M, Saha B (2015) Privatization, underpricing and welfare in the presence of foreign competition. J Public Econ Theory 17(3):433–460CrossRef
  Haraguchi J, Matsumura T (2014) Price versus quantity in a mixed duopoly with foreign penetration. Res Econ 68(4):338–353CrossRef
  Ino H, Matsumura T (2010) What role should public enterprises play in free-entry markets? J Econ 101(3):213–230CrossRef
  Lin MH, Matsumura T (2012) Presence of foreign investors in privatized firms and privatization policy. J Econ 107(1):71–80CrossRef
  Matsumura T (1998) Partial privatization in mixed duopoly. J Public Econ 70(3):473–483CrossRef
  Matsumura T, Kanda O (2005) Mixed oligopoly at free entry markets. J Econ 84(1):27–48CrossRef
  Matsumura T, Matsushima N (2012) Airport privatization and international competition. Jpn Econ Rev 63(4):431–450CrossRef
  Matsumura T, Ogawa A (2012) Price versus quantity in a mixed duopoly. Econ Lett 116(2):174–177CrossRef
  Matsumura T, Okumura Y (2013) Privatization neutrality theorem revisited. Econ Lett 118(2):324–326CrossRef
  Matsumura T, Shimizu D (2010) Privatization waves. Manch Sch 78(6):609–625CrossRef
  Merrill WC, Schneider N (1966) Government firms in oligopoly industries: a short-run analysis. Q J Econ 80(3):400–412CrossRef
  Nakamura Y (2013) Social welfare under quantity competition and price competition in a mixed duopoly with network effects: an analysis. Theor Econ Lett 3:211–215CrossRef
  Scrimitore M (2013) Price or quantity?: the strategic choice of subsidized firms in a mixed duopoly. Econ Lett 118(2):337–341CrossRef
  Scrimitore M (2014) Profitability under commitment in Cournot and Bertrand mixed markets. J Inst Theor Econ 170(4):684–703CrossRef
  Shubik M, Levitan R (1980) Market structure and behavior. Harvard University Press, CambridgeCrossRef
  Singh N, Vives X (1984) Price and quantity competition in a differentiated duopoly. RAND J Econ 15(4):546–554CrossRef
  Tanaka Y (2001a) Profitability of price and quantity strategies in an oligopoly. J Math Econ 35(3):409–418CrossRef
  Tanaka Y (2001b) Profitability of price and quantity strategies in a duopoly with vertical product differentiation. Econ Theory 17(3):693–700CrossRef
  Tasnádi A (2006) Price vs quantity in oligopoly games. Int J Ind Organ 24(3):541–554CrossRef
  Vives X (1985) On the efficiency of Bertrand and Cournot equilibria with product differentiation. J Econ Theory 36:166–175CrossRef
  Wang LFS, Chen TL (2010) Do cost efficiency gap and foreign competitors matter concerning optimal privatization policy at the free entry market? J Econ 100(1):33–49CrossRef
  Wang LFS, Lee JY (2013) Foreign penetration and undesirable competition. Econ Model 30(1):729–732CrossRef
  
• 作者单位：Junichi Haraguchi (1)
  Toshihiro Matsumura (2)
  
  1. Graduate School of Economics, The University of Tokyo, 7-3-1, Hongo, Bunkyo-ku, Tokyo, 113-0033, Japan
  2. Institute of Social Science, The University of Tokyo, 7-3-1, Hongo, Bunkyo-ku, Tokyo, 113-0033, Japan
  
• 刊物主题：Economics general; Economic Theory; International Economics; Microeconomics; R & D/Technology Policy;
• 出版者：Springer Vienna
• ISSN：1617-7134

文摘

We revisit the classic discussion comparing price and quantity competition, but in a mixed oligopoly in which one state-owned public firm competes against private firms. It has been shown that in a mixed duopoly, price competition yields a larger profit for the private firm. This implies that firms face weaker competition under price competition, which contrasts sharply with the case of a private oligopoly. Here, we adopt a standard differentiated oligopoly with a linear demand. We find that regardless of the number of firms, price competition yields higher welfare. However, the profit ranking depends on the number of private firms. We find that if the number of private firms is greater than or equal to five, it is possible that quantity competition yields a larger profit for each private firm. We also endogenize the price-quantity choice. Here, we find that Bertrand competition can fail to be an equilibrium, unless there is only one private firm.