8 Oligopoly - Luiscabral.net

Endnotes
1. The Wall Street Journal, November 16, 1999.
2. The Bertrand model was first introduced by J. Bertrand, “Théorie Mathématique de la Richesse Sociale”,
Journal de Savants (1883), 499–508.
3. Sources: Shapiro, Carl, and Hal Varian (1999), Information Rules, Harvard Business School Press. Computer
Business Review, 16 November 1987. See http://www.cbronline.com/news/nynex puts phone book on cd (visited
October 2012). Walter R. Baranger, Taking In the Sites; Number, Please? 3 Routes to Phone Listings, The New
York Times, August 07, 1995.
4. This example is adapted from Shapiro, Carl, and Hal Varian (1998), Information Rules: A Strategic Guide to
the Network Economy, Cambridge, Mass.: Harvard Business School Press.
5. See Davidson, Carl, and Raymond Deneckere (1986), “Long-run Competition in Capacity, Short-run
Competition in Price, and the Cournot Model,” Rand Journal of Economics 17, 404-415; and Herk, Leonard F.
(1993), “Consumer Choice and Cournot Behavior in Capacity-constrained Duopoly Competition,” Rand Journal of
Economics 24, 399–417.
6. If capacity costs are sufficiently high, then firms’ capacity levels will surely be sufficiently low that the above
result holds. However, it can be shown that, even if capacity costs were low, the same would be true. See Kreps,
David M. and José A. Sheinkman (1983), “Capacity Precommitment and Bertrand Competition Yield Cournot
Outcomes,” Bell Journal of Economics 14, 326–337.
7. Sources: Andy Kessler, “Bernie Bites the Dust,” The Wall Street Journal, May 1, 2002. Ken Belson,
“WorldCom’s Audacious Failure and Its Toll on an Industry,” The New York Times, January 18, 2005.
8. Cournot, Agustin, Recherches sur les Principes Mathématiques de la Théorie des Richesses (1838). English
translation edited by N. Bacon, New York: Macmillan, 1897.
9. Source: The Wall Street Journal, August 17, 1999.
10. Sources: http://en.wikipedia.org/wiki/Market share of personal computer vendors,
http://www.statista.com/statistics/203759/average-selling-price-of-desktop-pcs-worldwide/