@article { , title = {Cournot vs. Bertrand in mixed markets with R\&D}, abstract = {We investigate the question of endogenous choice of price and quantity competition in a mixed duopoly where both welfare maximising public firm and profit maximising private firm invest in cost-reducing R\&D. In contrary to the conventional belief that Cournot competition arises in equilibrium, we find that price competition constitutes equilibrium. We further argue that the results that Cournot profit is strictly higher than Bertrand in standard oligopoly and that the Bertrand profit is strictly higher than Cournot in mixed oligopoly, both hold when the public and private firm engage in R\&D. We also find that the public firm is more innovative than the private firm.}, doi = {10.1016/j.najef.2019.02.006}, issn = {1062-9408}, journal = {The North American Journal of Economics and Finance}, note = {Correspondence to: \_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_ † We would like to thank Toshihiro Matsumura and Arijit Mukherjee for helpful discussions and suggestions. 1}, pages = {265-271}, publicationstatus = {Published}, publisher = {Elsevier}, url = {https://nottingham-repository.worktribe.com/output/1607737}, volume = {48}, keyword = {Bertrand, Cournot, Differentiated products, Mixed markets, Process innovation JEL Classification: D43, H42, L13, O31}, year = {2019}, author = {Basak, Debasmita and Wang, Leonard F.S.} }