Tasnádi, Attila (2012) Endogenous choice of decision variables. Pure mathematics and applications, 23 (1). pp. 67-79.
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Abstract
In this paper we allow the firms to choose their prices and quantities simultaneously. Quantities are produced in advance and their common sales price is determined by the market. Firms offer their “residual capacities” at their announced prices and the corresponding demand will be served to order. If all firms have small capacities, we obtain the Bertrand solution; while if at least one firm has a sufficiently large capacity, the Cournot outcome and a model of price leadership could emerge.
| Item Type: | Article |
|---|---|
| Uncontrolled Keywords: | Cournot, Bertrand-Edgeworth, Price Leadership, JEL codes: D43, L13 |
| Divisions: | Faculty of Economics > Department of Mathematics |
| Subjects: | Mathematics, Econometrics |
| Funders: | Lendület Fiatal Kutatói Program / Momentum Program of the Hungarian Academy of Sciences |
| Projects: | OTKA K-101224 |
| ID Code: | 779 |
| Deposited By: | Ádám Hoffmann |
| Deposited On: | 02 Aug 2012 08:00 |
| Last Modified: | 18 Oct 2021 08:27 |
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