Abstract
This paper compares the equilibrium outcomes under simultaneous and
sequential output setting in a mixed duopoly in a vertically
differentiated market. When the timing of the output game is determined
endogenously, it is shown that simultaneous play in the quality stage with
the public firm acting as the high-quality producer and simultaneous play
in the second period in the output stage turn out to be the unique subgame
perfect Nash equilibrium, which contrasts with the endogenous timing in a
purely private duopoly.
Go to article