Price or quantity? The strategic choice of subsidized firms in a mixed duopoly

C-Tier
Journal: Economics Letters
Year: 2013
Volume: 118
Issue: 2
Pages: 337-341

Score contribution per author:

1.005 = (α=2.01 / 1 authors) × 0.5x C-tier

α: calibrated so average coauthorship-adjusted count equals average raw count

Abstract

This paper investigates the endogenous choice of the strategic variable, price or quantity, taken in a mixed duopoly by a public and a private firm prior to market competition. While Matsumura and Ogawa (2012) in a standard mixed duopoly find that price is the unique equilibrium, we show that, by introducing firm subsidization in the same setting, quantity can constitute a dominant strategy equilibrium.

Technical Details

RePEc Handle
repec:eee:ecolet:v:118:y:2013:i:2:p:337-341
Journal Field
General
Author Count
1
Added to Database
2026-01-29