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Our list of lessons can now be expanded by two References Borenstein S. Bushnell J. B. and Stoft S. 1997. This equilibrium is solved for as follows Q1 Q2 1 Q1 9 Q1 2 Q 0 d Q1 Q1 9 Q2 / 2 similarly Q2 9 Q1 / 2 Solving simultaneously Q1 Q2 6 P 4 This gives a profit for each firm of 18 which is a little smaller and a consumer surplus of 18 which is as expected much greater than in the monopoly case. Borenstein S. and Bushnell J. B. 1997. An Empirical Analysis of the Potential for Market Power in...
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