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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- Blume, Andreas, 2003. "Bertrand without fudge," Economics Letters, Elsevier, vol. 78(2), pages 167-168, February.
- Einy, Ezra & Haimanko, Ori & Moreno, Diego & Shitovitz, Benyamin, 2008.
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- 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.
- Moreno, Diego & Shitovitz, Benyamin & 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.
- 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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- 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.
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