Duopoly Information Equilibrium: Cournot and Bertrand

Consider a symmetric differentiated duopoly model in which firms have private market data about the uncertain demand. We analyze two types of duopoly information equilibrium, Cournot and Bertrand, which emerge, respectively, from quantity and price competition, and show that the incentives for information sharing and its welfare consequences depend crucially on the type of competition, the nature of the goods (substitutes or complements), and the degree of product differentation. The demand structure is linear and symmetric, and allows the goods to be substitutes, independent or complements. There is uncertainty only about the