Original scientific paper
Pricing Behaviour of the Monopolistic and Duopolistic Firms in the Long Run with Heterogeneous Products
David R. Kamerschen
; University of Georgia, Athens, USA
Jae-Hee Park
; University of Georgia, Athens, USA
Abstract
Scholars have compared the pricing behaviour where a monopolist in the short run produces heterogeneous products 1 and 2, and a duopolist i produces goods i (i = 1, 2), where there are exogenous shocks to marginal cost and/or industry demand. This pricing behaviour is short run in that no entry is considered. However, this paper considers whether the existence of a potential entrant producing heterogeneous goods affects the pricing behaviour of the established monopolist under the same random shocks.
Keywords
Cournot profits; heterogeneous products; Nash equilibrium; probability; pricing behaviour
Hrčak ID:
34656
URI
Publication date:
1.5.2000.
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