TEL  Vol.3 No.4 , August 2013
Social Welfare under Quantity Competition and Price Competition in a Mixed Duopoly with Network Effects: An Analysis
Author(s) Yasuhiko Nakamura*
ABSTRACT

In their recent work, Matsumura and Ogawa (2012) showed that in the context of a mixed duopoly, equilibrium social welfare is higher in price-setting competition than in quantity-setting competition. We found that when the strength of network effects is sufficiently high, the above result is totally reversed; thus, in a mixed duopoly, the presence of network effects weakens the superiority of price-setting competition with respect to equilibrium social welfare.


Cite this paper
Y. Nakamura, "Social Welfare under Quantity Competition and Price Competition in a Mixed Duopoly with Network Effects: An Analysis," Theoretical Economics Letters, Vol. 3 No. 4, 2013, pp. 211-215. doi: 10.4236/tel.2013.34035.
References
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[3]   Y. Nakamura, “Capacity Choice in a Price-Setting Mixed Duopoly with Network Effects,” Modern Economy, Vol. 4, No. 5, 2013, pp. 418-425. doi:10.4236/me.2013.45044

[4]   Y. Nakamura, “Endogenous Timing in Price-Setting Private and Mixed Duopoly with Network Effects,” 2013, Mimeograph.

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