On Cournot and Bertrand’s competition in a collusive mixed oligopoly

Abstract

"We consider a mixed oligopoly of one public good and N private firms where the goods sold are horizontally differentiated. In our setting, an interdependent payoff structure characterizes the degree of competition among private firms. We show that, whereas in the Bertrand Model, private firms are willing to collude as much as possible, in the Cournot model, the existence of public firms reduces the latter scope of colusion"