文献类型：期刊文献

英文题名：Price and quantity competition in a differentiated duopoly with heterogeneous beliefs

作者：Xia, Haiyang[1]

机构：[1]East China Univ Sci & Technol, Sch Business, Shanghai, Peoples R China

年份：2021

卷号：89

期号：1

起止页码：46

外文期刊名：MANCHESTER SCHOOL

收录：;WOS:【SSCI(收录号:WOS:000571793400001)】；

语种：英文

外文关键词：Cournot competition; Bertrand competition; differentiated duopoly; heterogeneous beliefs

摘要：The purpose of this paper is to investigate the impact of heterogeneous beliefs about market demand on the profitability of firms under different competitive settings. To this end I consider a differentiated duopoly model where two firms with different beliefs about the market demand can compete in quantity (Cournot competition) or in price (Bertrand competition). The results show that the optimistic firm can outperform the pessimistic firm in profits under Cournot competition even in the state of Low demand as long as the ratio of High demand over Low demand is sufficiently low. Under Bertrand competition, however, if the ratio of High demand over Low demand is sufficiently low or the overall optimism of the two firms is sufficiently high, the pessimistic firm can gain higher profit than the optimistic one even when demand is high.