Duopoly firms' choice of strategy irrelevant, equilibrium maintained in all scenarios
The article explores how firms in a duopoly decide between setting prices or quantities to maximize their profits. The researchers found that it doesn't matter which strategy the firms choose, as long as they aim to maximize their relative profit. This means that any combination of price or quantity decisions by the firms can lead to a stable equilibrium. The relative profit of a firm, whether calculated as a ratio or a difference, still leads to the same outcome.