کد مقاله کد نشریه سال انتشار مقاله انگلیسی نسخه تمام متن
972534 1479743 2015 8 صفحه PDF دانلود رایگان
عنوان انگلیسی مقاله ISI
Cournot vs. Bertrand under relative performance delegation: Implications of positive and negative network externalities
موضوعات مرتبط
مهندسی و علوم پایه ریاضیات ریاضیات کاربردی
پیش نمایش صفحه اول مقاله
Cournot vs. Bertrand under relative performance delegation: Implications of positive and negative network externalities
چکیده انگلیسی


• Revisits Cournot-Bertrand comparison under relative performance based delegation.
• Strategies of opposite nature can lead to equivalent outcomes, but only by chance!
• Positive network externalities result in standard Cournot–Bertrand rankings.
• Negative network externalities lead to complete reversal of standard rankings.
• If firms can choose between price and quantity contracts, multiple equilibria exist.

This paper demonstrates that relative-performance based strategic managerial delegation does not lead to the equivalence of Bertrand and Cournot equilibria in the presence of network externalities, regardless of the strength and type of network externalities — positive or negative. In the presence of positive network externalities, under relative-performance based delegation, Bertrand competition yields lower prices and profits, and higher quantities, consumers surplus and welfare than Cournot competition. On the contrary, these rankings are completely reversed in the presence of negative network externalities. It also discusses the endogenous choice of price or quantity contract under delegation in the presence of network externalities.

ناشر
Database: Elsevier - ScienceDirect (ساینس دایرکت)
Journal: Mathematical Social Sciences - Volume 75, May 2015, Pages 94–101
نویسندگان
,