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Rebates in a Bertrand game

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  • Szech, Nora
  • Weinschenk, Philipp

Abstract

We study a price competition game in which customers are heterogeneous in the rebates they get from either of two firms. We characterize the transition between competitive pricing (without rebates), mixed strategy equilibrium (for intermediate rebates), and monopoly pricing (for larger rebates).

Suggested Citation

  • Szech, Nora & Weinschenk, Philipp, 2013. "Rebates in a Bertrand game," Journal of Mathematical Economics, Elsevier, vol. 49(2), pages 124-133.
    • Handle: RePEc:eee:mateco:v:49:y:2013:i:2:p:124-133
    DOI: 10.1016/j.jmateco.2012.12.004
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    References listed on IDEAS

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    Cited by:

    1. Wentao Yi & Chunqiao Tan, 2019. "Bertrand Game with Nash Bargaining Fairness Concern," Complexity, Hindawi, vol. 2019, pages 1-22, August.
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    3. Peter‐J. Jost & Anna Ressi, 2022. "What can I do for you? Optimal market segmentation in service markets," Production and Operations Management, Production and Operations Management Society, vol. 31(7), pages 2838-2852, July.
    4. de Almeida Prado, Fernando Pigeard & Blavatskyy, Pavlo, 2021. "Existence and uniqueness of price equilibrium in oligopoly model with power demand," Mathematical Social Sciences, Elsevier, vol. 111(C), pages 1-10.

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