scholarly journals Cournot and Bertrand Competition in the Software Industry

2017 ◽  
Vol 2017 ◽  
pp. 1-10
Author(s):  
Luciano Fanti ◽  
Domenico Buccella
Keyword(s):  
Social Welfare ◽  
Software Industry ◽  
Bertrand Competition ◽  
The Social ◽  
Cournot And Bertrand Competition

In a software industry based on a platform firm and two firms producing differentiated applications complementary to the platform, we investigate the effects on profits and welfare of the choice of different contracts (price versus quantity) by the application firms. In contrast to the traditional result, (1) equilibrium profits are higher under Cournot or Bertrand competition depending upon the degree of complementarity between platform and application producers as well as the degree of substitutability between applications; (2) the social welfare may be higher under Cournot when the application products are highly substitutable.

Price Versus Quantity Competition in a Vertically Related Market with Retailer’s Effort

2020 ◽  
Vol 0 (0) ◽  
Author(s):  
Qian Liu ◽  
Leonard F. S. Wang
Keyword(s):  
Social Welfare ◽  
Consumer Surplus ◽  
Cournot Competition ◽  
Bertrand Competition ◽  
Quantity Competition ◽  
Decentralized Bargaining ◽  
Cournot And Bertrand Competition

AbstractAllowing downstream retailers to engage in demand-enhancing investment, this paper demonstrates that the classical conclusions regarding the comparison of Cournot and Bertrand competition in a vertically related market with decentralized bargaining are completely reversed. It shows that Bertrand competition is more efficient than Cournot competition, in the sense that both consumer surplus and social welfare are always higher in the former.

An Analytical Exposition of the Social Welfare Role of Wealth in Islam

2015 ◽  
Author(s):  
Ahmad Bello Dogarawa ◽  
Suleiman Muhammad Hussain
Keyword(s):  
Social Welfare ◽  
The Social

scholarly journals Demand Subsidy versus Production Regulation: Development of New Energy Vehicles in a Competitive Environment

Mathematics ◽  
2021 ◽  
Vol 9 (11) ◽  
pp. 1280
Author(s):  
Zixuan Wang ◽  
Xiuzhang Li
Keyword(s):  
Social Welfare ◽  
Stackelberg Game ◽  
Positive Impact ◽  
Consumer Preference ◽  
Social Planner ◽  
Environmental Preferences ◽  
The Social ◽  
New Energy ◽  
Vehicle Market ◽  
New Energy Vehicles

In the competitive market environment, the growth of new energy vehicles (NEVs) faces many obstacles. Demand subsidy or production regulation-related policies are widely used to promote the development of NEVs. A comparative analysis of the effects of the two types of policies on the competitive vehicle market requires further study. To fill this gap, we investigate which type of policy is more preferable from the perspective of the social planner. In this paper, we construct a Stackelberg game with a welfare-maximizing social planner and two profit-maximizing manufacturers producing NEVs and fuel vehicles (FVs), respectively. Interestingly, although both types of policies can increase the quantity of NEVs, demand subsidy also promotes the growth of total vehicles at the same time; in contrast, production regulation reduces the total vehicles. Moreover, compared with the benchmark that no policy intervention, demand subsidy generally improves social welfare, while production regulation improves social welfare only with high consumer preference for NEVs. Nevertheless, production regulation always has a positive impact on the environment, whereas demand subsidy may have a positive impact only when the NEV is very environment friendly. The numerical results show that consumer environmental preferences and the regulation of environmental impact determine which type of policy dominates the other.

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