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The Folk theorem and bertrand competition

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Author Info
Prabal Roy Chowdhury () (Indian Statistical Institute, New Delhi)

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Abstract

We examine if the folk theorem of perfect competition holds under Bertrand competition (when firms supply all demand), both when entry is exogenous, as well as when it is free. Inter alia, we also characterize the limit equilibrium sets.

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File URL: http://www.isid.ac.in/~pu/dispapers/dp05-06.pdf
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Publisher Info
Paper provided by Indian Statistical Institute, New Delhi, India in its series Indian Statistical Institute, Planning Unit, New Delhi Discussion Papers with number 05-06.

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Length: 29 pages
Date of creation: Aug 2005
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Handle: RePEc:ind:isipdp:05-06

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Related research
Keywords: Bertrand oligopoly; folk theorem; limit properties; exogenous entry; free entry;

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Find related papers by JEL classification:
D43 - Microeconomics - - Market Structure and Pricing - - - Oligopoly and Other Forms of Market Imperfection
D41 - Microeconomics - - Market Structure and Pricing - - - Perfect Competition
L13 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Oligopoly and Other Imperfect Markets

References listed on IDEAS
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  1. Bulow, Jeremy I & Geanakoplos, John D & Klemperer, Paul D, 1985. "Multimarket Oligopoly: Strategic Substitutes and Complements," Journal of Political Economy, University of Chicago Press, vol. 93(3), pages 488-511, June. [Downloadable!] (restricted)
  2. Novshek, William & Chowdhury, Prabal Roy, 2003. "Bertrand equilibria with entry: limit results," International Journal of Industrial Organization, Elsevier, vol. 21(6), pages 795-808, June. [Downloadable!] (restricted)
  3. Allen, Beth & Hellwig, Martin, 1986. "Bertrand-Edgeworth Oligopoly in Large Markets," Review of Economic Studies, Blackwell Publishing, vol. 53(2), pages 175-204, April. [Downloadable!] (restricted)
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This page was last updated on 2009-12-3.

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