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Bertrand-Edgeworth games under triopoly: the payoffs

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  • De Francesco, Massimo A.
  • Salvadori, Neri

Abstract

The paper extends the analysis of price competition among capacity constrained sellers beyond duopoly and symmetric oligopoly. The main focus is on the equilibrium payoffs under triopoly. The paper also includes insightful examples highlighting features of equilibrium which can arise in a triopoly but not in a duopoly. Most notably, the supports of the equilibrium strategies need not be connected, nor need be connected the union of the supports; further, an atom may exist for a firm different from the largest one.

Suggested Citation

  • De Francesco, Massimo A. & Salvadori, Neri, 2015. "Bertrand-Edgeworth games under triopoly: the payoffs," MPRA Paper 64638, University Library of Munich, Germany.
  • Handle: RePEc:pra:mprapa:64638
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    File URL: https://mpra.ub.uni-muenchen.de/64638/3/MPRA_paper_64638.pdf
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    References listed on IDEAS

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    Cited by:

    1. Zoltán Rácz & Attila Tasnádi, 2016. "A Bertrand–Edgeworth oligopoly with a public firm," Journal of Economics, Springer, vol. 119(3), pages 253-266, November.
    2. Mark Armstrong & John Vickers, 2022. "Patterns of Competitive Interaction," Econometrica, Econometric Society, vol. 90(1), pages 153-191, January.
    3. Armstrong, Mark & Vickers, John, 2018. "Patterns of Competition with Captive Customers," MPRA Paper 90362, University Library of Munich, Germany.
    4. Massimo A. De Francesco & Neri Salvadori, 2022. "Bertrand–Edgeworth oligopoly: Characterization of mixed strategy equilibria when some firms are large and the others are small," Metroeconomica, Wiley Blackwell, vol. 73(3), pages 803-824, July.
    5. De Francesco, Massimo A. & Salvadori, Neri, 2016. "Bertrand-Edgeworth games under triopoly: the equilibrium strategies when the payoffs of the two smallest firms are proportional to their capacities," MPRA Paper 69999, University Library of Munich, Germany.

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    More about this item

    Keywords

    Bertrand-Edgeworth; Price game; Oligopoly; Triopoly; Mixed strategy equilibrium;
    All these keywords.

    JEL classification:

    • C72 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Noncooperative Games
    • D47 - Microeconomics - - Market Structure, Pricing, and Design - - - Market Design
    • L13 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Oligopoly and Other Imperfect Markets

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