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Strategic commitment to pursue a goal other than profit in a Cournot duopoly

By  |  October 9, 2012

Posted by D. Daniel Sokol

Dimitry Rtischev, Gakushuin University analyzes Strategic commitment to pursue a goal other than profit in a Cournot duopoly.

ABSTRACT: Competition among profit-seeking firms in an oligopolistic industry inherently generates incentives for firms to commit to maximize a performance metric other than profit. We briefly review the underlying theory, analyze its ramifications in a Cournot duopoly, and consider feasibility constraints from the perspective of strategic management.