Bertrand competition with cost uncertainty
We analyze the classical model of Bertrand competition in a homogeneous good market with constant marginal costs and uncertainty regarding rivals' costs. First, we show that there exists a mixed strategy Nash equilibrium under the conventional equal sharing rule. Second, we illustrate the result for the case of piecewise-affine market demand.
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- Dastidar, Krishnendu Ghosh, 1995. "On the Existence of Pure Strategy Bertrand Equilibrium," Economic Theory, Springer;Society for the Advancement of Economic Theory (SAET), vol. 5(1), pages 19-32, January.
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- Shitovitz, Benyamin & Moreno, Diego & Haimanko, Ori & Einy, Ezra, 2007. "On the existence of Bayesian Cournot equilibrium," UC3M Working papers. Economics we070603, Universidad Carlos III de Madrid. Departamento de Economía.
- Einy, Ezra & Haimanko, Ori & Moreno, Diego & Shitovitz, Benyamin, 2008. "On the Existence of Bayesian Cournot Equilibrium," Discussion Papers 2008-11, Graduate School of Economics, Hitotsubashi University.
- Ezra Einy & Ori Haimanko & Diego Moreno & Benyamin Shitovitz, 2007. "On the Existence of Bayesian Cournot Equilibrium," Working Papers 0702, Ben-Gurion University of the Negev, Department of Economics.
- Ezra Einy & Ori Haimanko & Diego Moreno & Benyamin Shitovitz, 2007. "On the Existence of Bayesian Cournot Equilibrium," Working Papers 0715, Ben-Gurion University of the Negev, Department of Economics.
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- Robert G. Hansen, 1988. "Auctions with Endogenous Quantity," RAND Journal of Economics, The RAND Corporation, vol. 19(1), pages 44-58, Spring.
- Philip J. Reny, 1999. "On the Existence of Pure and Mixed Strategy Nash Equilibria in Discontinuous Games," Econometrica, Econometric Society, vol. 67(5), pages 1029-1056, September.
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- Hoernig, Steffen H., 2002. "Mixed Bertrand equilibria under decreasing returns to scale: an embarrassment of riches," Economics Letters, Elsevier, vol. 74(3), pages 359-362, February.
- Spulber, Daniel F, 1995. "Bertrand Competition When Rivals' Costs Are Unknown," Journal of Industrial Economics, Wiley Blackwell, vol. 43(1), pages 1-11, March.
- Todd R. Kaplan & David Wettstein, 2000. "The possibility of mixed-strategy equilibria with constant-returns-to-scale technology under Bertrand competition," Spanish Economic Review, Springer;Spanish Economic Association, vol. 2(1), pages 65-71. Full references (including those not matched with items on IDEAS)
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