Differentiated-products Cournot attributes higher markups than Bertrand-Nash

In a differentiated products setting when costs are unobserved, the Cournot model of quantity-setting competition attributes a greater share of prices to markups than does the Bertrand-Nash model of price-setting, leading to lower estimates of marginal costs.(c) 2022 Elsevier B.V. All rights reserved.

Automated summary

In a differentiated products setting with unobserved costs, the Cournot model attributes a larger proportion of prices to markups compared to the Bertrand-Nash model, resulting in lower estimates of marginal costs.