Price versus quantity in a mixed duopoly. (English) Zbl 1253.91113

Summary: We revisit the classic discussion of the endogenous choice of a price or a quantity contract, but in a mixed duopoly. We find that choosing the price contract is a dominant strategy for both firms, whether the goods are substitutes or complements.


91B52 Special types of economic equilibria
91B26 Auctions, bargaining, bidding and selling, and other market models
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