Document Type
Article
Publication Date
10-2019
Abstract
We consider a setting where firms in the first stage invest in cost-reducing R&D. In the market stage, one firm sets a quantity, and another sets a price. We prove that the quantity-setting firm invests more in R&D, has a lower price, and produces higher quantity than the price-setting firm. We also consider welfare implications.
Recommended Citation
Semenov, Aggey, and Jean-Baptiste Tondji. “On the Dynamic Analysis of Cournot–Bertrand Equilibria.” Economics Letters 183 (October 1, 2019): 108549. https://doi.org/10.1016/j.econlet.2019.108549.
Creative Commons License
This work is licensed under a Creative Commons Attribution-Noncommercial-No Derivative Works 4.0 License.
Publication Title
Economics Letters
DOI
10.1016/j.econlet.2019.108549
Comments
© 2019 Elsevier B.V. Original published version available at https://doi.org/10.1016/j.econlet.2019.108549