Mixed Cournot-Bertrand Competition in N-firm Differentiated Oligopolies

An n-firm mixed oligopoly is examined with product differentiation, in which quantityadjusting and price-adjusting firms coexist and compete. In a mixed duopoly framework, Singh and Vives (1984) show that a dominant strategy for a firm is a quantity-strategy if the goods are substitutes and it is a price-strategy if the goods are complements. It is demonstrated that this clear-cut result in the duopoly framework does not necessarily remain valid in an n-firm oligopoly, and the choice of the dominant strategy depends on the average quality ratio of the goods produced by the quantity-adjusting and by the price-adjusting firms