Abstract

The quantity-setting (Cournot) oligopoly with perfect complements is dual to the price-setting (Betrand) oligopoly with homogeneous goods. Under mild technical conditions the former setting has a unique (pure strategy) Nash equilibrium with null quantities. As an implication, the provision of perfectly complementary goods might actually be impossible, if the market is not either perfectly competitive or monopolized.

Full Text
Published version (Free)

Talk to us

Join us for a 30 min session where you can share your feedback and ask us any queries you have

Schedule a call