Dynamic Duopoly: Prices and Quantities
研究企业同时选择价格和数量的动态双寡头模型，发现当产能调整不灵活时，企业会持有闲置产能，导致无法实现垄断利润；而产能灵活时可能维持垄断行为。
We study a dynamic model of duopoly in which firms choose both prices and quantities. If quantity (capacity) choices are relatively inflexible, firms generally carry excess (idle) capacity in equilibrium. Because of this enforcement cost, firms are unable to achieve monopoly levels. This contrasts with models in which which firms compete in either prices or quantities alone. On the other hand, if capacities are flexible firms may be able to sustain monopoly behaviour.