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Endogenous timing in a mixed duopoly: Price competition. (English) Zbl 1180.91144
Summary: The endogenous order of moves is analyzed in a mixed duopoly for differentiated goods, where firms choose whether to set prices sequentially or simultaneously. It is shown that, in contrast to the private duopoly where firms set prices sequentially, in the mixed duopoly firms choose prices simultaneously. Moreover, the result obtained in the mixed duopoly under price competition differs from the one under quantity competition, since in the latter case decisions are taken sequentially.

MSC:
91B26 Auctions, bargaining, bidding and selling, and other market models
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