Intermediate Microeconomics and Its Application 12th Edition by Walter Nicholson,Christopher Snyder

Exercise 16

Commercial fishing is an industry that is often given as an example of quantity competition, as in the Cournot model. Can you think of others? Can you give examples of industries in which firms compete in prices? In which of these cases are capacity constraints important, so that the two-stage model of capacity investment and price competition might apply?