Chapter 4

Strategic Price and Quantity Choices

Daniel Cracau


In this chapter, I present a systematic overview of the market outcomes for classical oligopoly games. This study contains six games: pure quantity competition, pure price competition as well as price and quantity competition, each with simultaneous and sequential moves. I present equilibrium prices, quantities and profits for each game. In particular, I present the mixed strategy equilibrium of the simultaneous price and quantity competition. This equilibrium was found by Gertner (1986), but remained unrecognized so far. From a comparison of market outcomes, I can classify situations where the choice of decision variable(s) and timing gives strategic advantages.

Total Pages: 55-76 (22)

Purchase Chapter  Book Details


.Intellectual Property Basic Manual for Researchers in Universities.
.Research on Corporate Environmental Responsibility in China.
.Firms’ Strategic Decisions: Theoretical and Empirical Findings.
.Firms’ Strategic Decisions: Theoretical and Empirical Findings.