Winner-take-all price competition
We analyze an oligopoly model of homogeneous product price competition that allows for discontinuities in demand and/or costs. Conditions under which only zero profit equilibrium outcomes obtain in such settings are provided. We then illustrate through a series of examples that the conditions provided are "tight" in the sense that their relaxation leads to positive profit outcomes.
Volume (Year): 19 (2002)
Issue (Month): 2 ()
|Note:||Received: April 7, 2000; revised version: September 14, 2000|
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