Cournot competition vs. Bertrand competition: the choice of a strategic variable. The case of Russian automobile market
EDN: VOHAIT
Abstract
The paper analyzes oligopolistic competition in a market for a differentiated product. A comparative analysis of competition models by Cournot (output competition) and Bertrand (price competition) under prerequisites put forward by the authors shows that under Bertrand competition the price level will be lower. Whereas interrelation between firms output and profit is ambiguous (if goods produced are substitutes), and depend, other things being equal, on the attractiveness of the good offered by the firm.The results obtained are illustrated using Russia’s automotive market review. In particular, an attempt is made to classify some decisions made by car producers as the one or the other competition strategy analyzed in the theoretical part of the paper.
About the Authors
E. LevinaE. Pokatovich
References
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Review
For citations:
Levina E., Pokatovich E. Cournot competition vs. Bertrand competition: the choice of a strategic variable. The case of Russian automobile market. Journal of Modern Competition. 2015;9(6):52-62. EDN: VOHAIT
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