英文摘要 |
This paper investigates the theory of endogenous choice of the competition strategy in a mixed duopoly model, in which the public and private firms compete in an integrated market with both domestic and foreign consumers. We present the following findings. First, if the goods are complements, or if the goods are substitutes and the weight of consumer surplus (the fraction of domestic consumers) is greater than the degree of product substitutability, then choosing price is the dominant strategy for each firm. Second, if the goods are substitutes and the weight of consumer surplus (the fraction of domestic consumers) is less than the degree of product substitutability, then the optimal choice of the two firms will gradually change from the price strategy to the quantity strategy. In particular, when the weight of consumer surplus is relatively moderate, mixed quantity-price competition arises as an equilibrium outcome. When the weight of consumer surplus is relatively low, both firms choosing quantity is a dominant strategy equilibrium in a mixed duopoly. |