Cournot and Bertrand equilibria merge, boosting duopoly outputs significantly.
The study shows that when companies focus on maximizing their relative profits instead of absolute profits, the equilibrium outputs in a duopoly with similar products are higher. This means that in this scenario, the outcomes of Cournot and Bertrand equilibria are the same. The research assumes that the demand for the products is linear, the costs are constant, and there are no fixed costs.