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A note on undominated Bertrand equilibria

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  • Kartik, Navin

Abstract

This note shows that the conventional outcome associated with Bertrand competition with homogenous products and different marginal costs is obtained in every Nash equilibrium in which firms use undominated strategies. This strengthens an existence result due to Blume (2003).

Suggested Citation

  • Kartik, Navin, 2011. "A note on undominated Bertrand equilibria," Economics Letters, Elsevier, vol. 111(2), pages 125-126, May.
    • Handle: RePEc:eee:ecolet:v:111:y:2011:i:2:p:125-126
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    References listed on IDEAS

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    1. Blume, Andreas, 2003. "Bertrand without fudge," Economics Letters, Elsevier, vol. 78(2), pages 167-168, February.
    2. Baye, Michael R. & Morgan, John, 1999. "A folk theorem for one-shot Bertrand games," Economics Letters, Elsevier, vol. 65(1), pages 59-65, October.
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    Cited by:

    1. Peyman Khezr & Flavio M. Menezes, 2021. "Entry and social efficiency under Bertrand competition and asymmetric information," International Journal of Game Theory, Springer;Game Theory Society, vol. 50(4), pages 927-944, December.
    2. Garella, Paolo G. & Laussel, Didier & Resende, Joana, 2021. "Behavior based price personalization under vertical product differentiation," International Journal of Industrial Organization, Elsevier, vol. 76(C).
    3. Seung Han Yoo, 2014. "Competition, Corruption and Institutional Design," Discussion Paper Series 1406, Institute of Economic Research, Korea University.
    4. Thomas Demuynck & P. Jean-Jacques Herings & Riccardo D. Saulle & Christian Seel, 2019. "Bertrand competition with asymmetric costs: a solution in pure strategies," Theory and Decision, Springer, vol. 87(2), pages 147-154, September.
    5. Boone, Jan & Larraín Aylwin, María Jose & Müller, Wieland & Ray Chaudhuri, Amrita, 2012. "Bertrand competition with asymmetric costs: Experimental evidence," Economics Letters, Elsevier, vol. 117(1), pages 134-137.
    6. Joao Montez & Nicolas Schutz, 2021. "All-Pay Oligopolies: Price Competition with Unobservable Inventory Choices [Extremal Equilibria of Oligopolistic Supergames]," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 88(5), pages 2407-2438.
    7. De Nijs, Romain, 2012. "Further results on the Bertrand game with different marginal costs," Economics Letters, Elsevier, vol. 116(3), pages 502-503.
    8. Liang, Xiaoying & Xie, Lei & Yan, Houmin, 2012. "Bertrand competition with intermediation," Economics Letters, Elsevier, vol. 116(1), pages 112-114.
    9. Soeren C. Schwuchow, 2023. "Organized crime as a link between inequality and corruption," European Journal of Law and Economics, Springer, vol. 55(3), pages 469-509, June.
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    11. Hefti, Andreas & Shen, Peiyao, 2019. "Supply function competition with asymmetric costs: Theory and experiment," Economics Letters, Elsevier, vol. 178(C), pages 24-27.

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