Comparing Cournot and Bertrand Equilibria in the Presence of Spatial Barriers and R&D

被引：0
|
作者：
Kuang-Cheng Andy Wang
Yi-Jie Wang
Wen-Jung Liang
机构：
[1] Chang Gung University,Department of Industrial and Business Management
[2] Linkou Chang Gung Memorial Hospital,Department of Neurology
[3] Ming Chuan University,Department of International Business
[4] National Dong Hwa University,Department of Economics
来源：
Review of Industrial Organization | 2021年 / 58卷
关键词：
Bertrand competition; Cournot competition; Process R&D; Spatial barriers; R32; L22;
D O I：
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学科分类号：
摘要：
We compare the equilibria under Bertrand and Cournot competition in the spatial barbell model where spatial barriers and process R&D are involved. We show that when the market becomes more competitive by switching from Cournot to Bertrand competition, R&D investment may increase (decrease) depending upon a low (high) transport rate. Next, we find that under Cournot competition total output, consumer surplus, and welfare are higher, but profit is lower than is true for Bertrand competition, when the transport rate is high, which overturns the traditional result.
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页码：475 / 491
页数：16
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