✦ LIBER ✦

A comparison of Bertrand and Cournot equilibrium outcomes in a differentiated nonrenewable resources duopoly

✍ Scribed by Gérard Gaudet; Michel Moreaux

Publisher: Elsevier Science
Year: 1988
Tongue: English
Weight: 323 KB
Volume: 11
Category: Article
ISSN: 0895-7177
DOI: 10.1016/0895-7177(88)90624-3

No coin nor oath required. For personal study only.

✦ Synopsis

This paper considers a differentiated nonrenewable natural resource duopoly. The outcome of a Cournot type game, where both producers compete in quantities, is compared to that of a Bertrand type game, where both producers compete in prices. It is shown that a Cournot game yields a higher present value for the resource stocks if the resources are substitutes and that the reverse is true if they are complements.