ASYMMETRIC ADJUSTMENT IN SYMMETRICAL DUOPOLY

Authors
HANSEN PS MOLLGAARD HP OVERGAARD PB SORENSEN JR
Citation
Ps. Hansen et al., ASYMMETRIC ADJUSTMENT IN SYMMETRICAL DUOPOLY, Economics letters, 53(2), 1996, pp. 183-188
Citations number
10
Categorie Soggetti
Economics
Journal title
Economics letters → ACNP
ISSN journal
01651765
Volume
53
Issue
2
Year of publication
1996
Pages
183 - 188
Database
ISI
SICI code
0165-1765(1996)53:2<183:AAISD>2.0.ZU;2-7
Abstract
Adjustments to unanticipated demand shocks in a symmetric, differentia ted Bertrand duopoly are analysed. Asymmetric adjustment may arise eve n when adjustment costs are negligible or absent: In some equilibria o nly one firm adjusts to negative shocks, while both firms adjust to po sitive shocks.