Monopolies and Duopolies Can Achieve Same Outcomes, Benefiting Consumers
The article explores if different types of competition in markets with similar products can lead to the same outcome. The researchers found that the level of product differences is crucial in determining if Bertrand and Cournot equilibriums are equivalent. They discovered that there is a specific condition where these equilibriums are the same, regardless of market structures. Additionally, the number of companies in Cournot competition that match Bertrand equilibrium increases as product differentiation grows.