Strategic Complementarity Conditions in Bertrand Oligopoly
AbstractThis note relates to Topkis (1995). We establish via counterexample that:(i) A new monotone transformation of the firms' profit functions may lead to cardinal complementarity when the standard log and identity transformations both fail, and (ii) Topkis's notion of critical sufficient condition for monotone comparative statics of a firm cannot be extended to rely only on positive unit costs.
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Bibliographic InfoPaper provided by University of Copenhagen. Department of Economics. Centre for Industrial Economics in its series CIE Discussion Papers with number 2000-11.
Length: 7 pages
Date of creation: Dec 2000
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supermodularity; single-crossing property; price competition;
Find related papers by JEL classification:
- C72 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Noncooperative Games
- D43 - Microeconomics - - Market Structure and Pricing - - - Oligopoly and Other Forms of Market Imperfection
- L13 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Oligopoly and Other Imperfect Markets
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