Dynamic duopoly: Prices and quantities

Jean Pierre Benoit, Vijay Krishna

Research output: Contribution to journalArticlepeer-review

86 Scopus citations


We study a dynamic model of duopoly in which firms choose both prices and quantities. If quantity (capacity) choices are relatively inflexible, firms generally carry excess (idle) capacity in equilibrium. Because of this enforcement cost, firms are unable to achieve monopoly levels. This contrasts with models in which which firms compete in either prices or quantities alone. On the other hand, if capacities are flexible firms may be able to sustain monopoly behaviour.

Original languageEnglish (US)
Pages (from-to)23-35
Number of pages13
JournalReview of Economic Studies
Issue number1
StatePublished - Jan 1987

All Science Journal Classification (ASJC) codes

  • Economics and Econometrics


Dive into the research topics of 'Dynamic duopoly: Prices and quantities'. Together they form a unique fingerprint.

Cite this