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Double Bertrand competition among intermediaries when consumers can default


  • Frederique Bracoud

    () (Keele University)


This paper models a sequential double price competition among intermediaries when their expected revenue per sale is affected by consumers' default. If this revenue is non-monotonic with the asking price, the Walrasian outcome may not be an equilibrium and demand rationing may emerge instead.

Suggested Citation

  • Frederique Bracoud, 2007. "Double Bertrand competition among intermediaries when consumers can default," Economics Bulletin, AccessEcon, vol. 4(7), pages 1-16.
  • Handle: RePEc:ebl:ecbull:eb-05d40005

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    References listed on IDEAS

    1. Frédérique Bracoud, 2002. "Sequential Models of Bertrand Competition for Deposits and Loans under Asymmetric Information," Game Theory and Information 0211002, EconWPA.
    2. Stahl, Dale O, II, 1988. "Bertrand Competition for Inputs and Walrasian Outcomes," American Economic Review, American Economic Association, vol. 78(1), pages 189-201, March.
    3. Yanelle, Marie-Odile, 1989. "The strategic analysis of intermediation," European Economic Review, Elsevier, vol. 33(2-3), pages 294-301, March.
    4. Linda Toolsema, 2001. "Reserve requirements and double Bertrand competition among banks," Applied Economics Letters, Taylor & Francis Journals, vol. 8(5), pages 291-293.
    5. Stiglitz, Joseph E & Weiss, Andrew, 1981. "Credit Rationing in Markets with Imperfect Information," American Economic Review, American Economic Association, vol. 71(3), pages 393-410, June.
    6. Xavier Freixas & Jean-Charles Rochet, 1997. "Microeconomics of Banking," MIT Press Books, The MIT Press, edition 1, volume 1, number 0262061937, January.
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    Cited by:

    1. Antonio Ruiz-Porras, 2008. "Los beneficios del liderazgo en el mercado de depositos bancarios: una comparacion entre Cournot y Stackelberg," EconoQuantum, Revista de Economia y Negocios, Universidad de Guadalajara, Centro Universitario de Ciencias Economico Administrativas, Departamento de Metodos Cuantitativos y Maestria en Economia., vol. 4(2), pages 79-105, Enero-Jun.
    2. repec:bla:ecnote:v:46:y:2017:i:3:p:555-586 is not listed on IDEAS

    More about this item


    Bertrand Competition;

    JEL classification:

    • D4 - Microeconomics - - Market Structure, Pricing, and Design
    • L1 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance


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