Location of Repository

Kreps And Scheinkman With Product Differentiation: An Expository Note

By Stephen Martin

Abstract

Kreps and Scheinkman´s (1983) celebrated result is that in a two-stage model of a market with homogeneous products in which firms noncooperatively pick capacities in the first stage and set prices in the second stage, the equilibrium outcome is that of a one-shot Cournot game. This note derives capacity reaction functions for the first stage and extends the Kreps and Scheinkman result to the case of differentiated products.Cournot model, Bertrand model; Kreps and Scheinkman model; product differentiation

OAI identifier:

Suggested articles

Preview


To submit an update or takedown request for this paper, please submit an Update/Correction/Removal Request.