Characterization Of The Support Of The Mixed Strategy Price Equilibria In Oligopolies With Heterogeneous Consumers
AbstractThis paper revisits the theory of oligopoly pricing and shows that for a large class of demand and cost functions, a mixed strategy equilibrium necessarily implies that each firm’s equilibrium strategy is a discrete distribution over a finite number of prices.
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Bibliographic InfoPaper provided by McGill University, Department of Economics in its series Departmental Working Papers with number 2007-08.
Length: 13 pages
Date of creation: Jun 2007
Date of revision:
Other versions of this item:
- Sinitsyn, Maxim, 2008. "Characterization of the support of the mixed strategy price equilibria in oligopolies with heterogeneous consumers," Economics Letters, Elsevier, vol. 99(2), pages 242-245, May.
- 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
This paper has been announced in the following NEP Reports:
- NEP-ALL-2007-10-27 (All new papers)
- NEP-BEC-2007-10-27 (Business Economics)
- NEP-COM-2007-10-27 (Industrial Competition)
- NEP-MIC-2007-10-27 (Microeconomics)
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