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Asymmetric Duopoly under Different Market Structures

Author

Listed:
  • Jim Y. Jin

    (School of Economics and Finance, University of St. Andrews, U.K.)

  • Osiris J. Parcero

    (Economics Department, College of Business and Economics, United Arab Emirates University, U.A.E.)

Abstract

When goods are substitutes (complements), we find a clear price (output) ranking across five duopoly markets, namely Cournot, Bertrand, Cournot-Stackelberg, Bertrand-Stackelberg, and joint profit maximization. We explain these rankings in terms of levels of conjectural variation.

Suggested Citation

  • Jim Y. Jin & Osiris J. Parcero, 2010. "Asymmetric Duopoly under Different Market Structures," International Journal of Business and Economics, School of Management Development, Feng Chia University, Taichung, Taiwan, vol. 9(1), pages 45-56, April.
    • Handle: RePEc:ijb:journl:v:9:y:2010:i:1:p:45-56
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    References listed on IDEAS

    as
    1. Anderson, Simon P. & Engers, Maxim, 1992. "Stackelberg versus Cournot oligopoly equilibrium," International Journal of Industrial Organization, Elsevier, vol. 10(1), pages 127-135, March.
    2. Amir, Rabah & Jin, Jim Y., 2001. "Cournot and Bertrand equilibria compared: substitutability, complementarity and concavity," International Journal of Industrial Organization, Elsevier, vol. 19(3-4), pages 303-317, March.
    3. Leonard Cheng, 1985. "Comparing Bertrand and Cournot Equilibria: A Geometric Approach," RAND Journal of Economics, The RAND Corporation, vol. 16(1), pages 146-152, Spring.
    4. Dockner, Engelbert J, 1992. "A Dynamic Theory of Conjectural Variations," Journal of Industrial Economics, Wiley Blackwell, vol. 40(4), pages 377-395, December.
    5. Cabral, Luis M. B., 1995. "Conjectural variations as a reduced form," Economics Letters, Elsevier, vol. 49(4), pages 397-402, October.
    6. Gary M. Erickson, 1997. "Note: Dynamic Conjectural Variations in a Lanchester Oligopoly," Management Science, INFORMS, vol. 43(11), pages 1603-1608, November.
    7. James A. Brander & Anming Zhang, 1990. "Market Conduct in the Airline Industry: An Empirical Investigation," RAND Journal of Economics, The RAND Corporation, vol. 21(4), pages 567-583, Winter.
    8. Dastidar, Krishnendu Ghosh, 2004. "On Stackelberg games in a homogeneous product market," European Economic Review, Elsevier, vol. 48(3), pages 549-562, June.
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    Cited by:

    1. Yungho Weng & Chih-Ming Hung, 2020. "Tariff escalation and de-escalation: the role of market structure," The Japanese Economic Review, Springer, vol. 71(2), pages 233-246, April.

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    More about this item

    Keywords

    market comparison; price/output ranking; conjectural variation;
    All these keywords.

    JEL classification:

    • L11 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Production, Pricing, and Market Structure; Size Distribution of Firms
    • L13 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Oligopoly and Other Imperfect Markets
    • D43 - Microeconomics - - Market Structure, Pricing, and Design - - - Oligopoly and Other Forms of Market Imperfection

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