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Simultaneous Quantity Competition

In: Industrial Organization

Author

Listed:
  • Pak-Sing Choi

    (National Central University)

  • Eric Dunaway

    (Wabash College)

  • Felix Muñoz-Garcia

    (Washington State University)

Abstract

After studying markets with only one firm in Chap. 1 , we now turn to industries with two or more firms (oligopolies) either compete in quantities (Chap. 2 ) or in prices (Chap. 3 ). In this chapter, we assume that every firm chooses independently and simultaneously its output level, yielding an equilibrium output for each firm and an equilibrium aggregate output for the industry. Given this aggregate output, the equilibrium price is determined by the demand function entailing equilibrium profits for each firm.

Suggested Citation

  • Pak-Sing Choi & Eric Dunaway & Felix Muñoz-Garcia, 2023. "Simultaneous Quantity Competition," Springer Texts in Business and Economics, in: Industrial Organization, edition 2, chapter 0, pages 61-153, Springer.
    • Handle: RePEc:spr:sptchp:978-3-031-38635-0_2
    DOI: 10.1007/978-3-031-38635-0_2
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