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Comparing Cournot and Bertrand Equilibria in the Presence of Spatial Barriers and R&D
Review of Industrial Organization ( IF 1.313 ) Pub Date : 2020-07-16 , DOI: 10.1007/s11151-020-09775-x
Kuang-Cheng Andy Wang , Yi-Jie Wang , Wen-Jung Liang

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.



中文翻译:

在存在空间障碍和研发的情况下比较古诺和伯特兰均衡

我们在涉及空间障碍和过程研发的空间杠铃模型中比较了Bertrand和Cournot竞争下的均衡。我们表明,当通过从古诺(Cournot)竞争转向贝特朗(Bertrand)竞争使市场更具竞争力时,研发投入可能会根据低(高)运输速度而增加(减少)。接下来,我们发现在古诺竞争下,总产出,消费者剩余和福利较高,但利润却低于运输速度较高时的贝特朗竞争的情况,这推翻了传统结果。

更新日期:2020-07-16
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