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The dual of Bertrand with homogenous products is Cournot with perfect complements

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  • Paolo Bertoletti

    (University of Milan-Bicocca)

Abstract

The quantity-setting (Cournot) oligopoly with perfect complements is dual to the price-setting (Betrand) oligopoly with homogeneous goods. Under mild technical conditions the former setting has a unique (pure strategy) Nash equilibrium with null quantities. As an implication, the provision of perfectly complementary goods might actually be impossible, if the market is not either perfectly competitive or monopolized.

Suggested Citation

  • Paolo Bertoletti, 2022. "The dual of Bertrand with homogenous products is Cournot with perfect complements," Economic Theory Bulletin, Springer;Society for the Advancement of Economic Theory (SAET), vol. 10(2), pages 183-189, October.
    • Handle: RePEc:spr:etbull:v:10:y:2022:i:2:d:10.1007_s40505-022-00225-3
    DOI: 10.1007/s40505-022-00225-3
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    References listed on IDEAS

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    More about this item

    Keywords

    Cournot duopoly; Bertrand duopoly; Perfect complements; Homogeneous products;
    All these keywords.

    JEL classification:

    • D11 - Microeconomics - - Household Behavior - - - Consumer Economics: Theory
    • D43 - Microeconomics - - Market Structure, Pricing, and Design - - - Oligopoly and Other Forms of Market Imperfection
    • D61 - Microeconomics - - Welfare Economics - - - Allocative Efficiency; Cost-Benefit Analysis

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