Kreps & Scheinkman with Product Differentiation
Stephen Martin
Front. Econ. China ›› 2019, Vol. 14 ›› Issue (2) : 203 -219.
Kreps & Scheinkman with Product Differentiation
Kreps and Scheinkman (1983)’s celebrated result is that in a two-stage model of a market with homogeneous products in which firms noncooperatively pick capacities in the first stage and set prices in the second stage, the equilibrium outcome is that of a one-shot Cournot game. This note derives capacity best response functions for the first stage and extends the Kreps and Scheinkman result to the case of differentiated products.
Kreps and Scheinkman / capacity choice / Cournot / oligopoly / product differentiation
Higher Education Press
/
| 〈 |
|
〉 |
PDF
(884KB)
