Download This PaperCorrecting Cournot and Bertrand
9 Pages Posted: 13 Jun 2011 Last revised: 22 May 2017
Date Written: June 1, 2011
Abstract
This paper applies Hotelling’s model to correct the Bertrand and Cournot duopoly theories. It improves Bertrand’s result by showing that duopoly competition never drives price to zero, and enlarges Cournot’s result by showing that two duopolists capture the whole market. Finally, this paper proves that duopoly price and quantity competition are equivalent.
Keywords: Spatial Competition, Bertrand, Cournot, Duopoly
JEL Classification: D43, C72, R3
Suggested Citation: Suggested Citation
Choi, Hak, Correcting Cournot and Bertrand (June 1, 2011). Available at SSRN: https://ssrn.com/abstract=1863286 or http://dx.doi.org/10.2139/ssrn.1863286
Do you have negative results from your research you’d like to share?
Recommended Papers
Feedback
Feedback to SSRN
If you need immediate assistance, call 877-SSRNHelp (877 777 6435) in the United States, or +1 212 448 2500 outside of the United States, 8:30AM to 6:00PM U.S. Eastern, Monday - Friday.