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Differentiated Bertrand duopoly with variable demand

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  • PEITZ, MARTIN

Abstract

Two one-product firms compete in prices on a market with differentiated products. Goods are differentiated because customers switch from one good to the other at different relative prices. With the specification that mean demand in the market is unit-elastic 1 pro vide conditions on the shape of the customer density which guarantee the existence of a unique Bertrand equilibrium.

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Bibliographic Info

Article provided by Elsevier in its journal Research in Economics.

Volume (Year): 51 (1997)
Issue (Month): 2 (June)
Pages: 85-100

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Handle: RePEc:eee:reecon:v:51:y:1997:i:2:p:85-100

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Web page: http://www.elsevier.com/locate/inca/622941

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Cited by:
  1. Peitz, Martin, 2000. "Aggregation in a Model of Price Competition," Journal of Economic Theory, Elsevier, vol. 90(1), pages 1-38, January.
  2. Martin Peitz, 1999. "A difficulty with the address models of product differentiation," Economic Theory, Springer, vol. 14(3), pages 717-727.
  3. Martin Peitz, 1998. "- Consumer Heterogeneity And Market Imperfections," Working Papers. Serie AD 1998-16, Instituto Valenciano de Investigaciones Económicas, S.A. (Ivie).

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