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Price equilibria in pure strategies for homogeneous oligopoly

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  • ALLEN, Beth
  • THISSE, Jacques

Abstract

For a homogeneous product oligopoly market, possibilities for pure strategy Nash equilibria in prices are studied. Consumers, who each nonstrategically purchase one unit up to a common reservation price, are hypothesized to be more concerned with large price differences (and therefore buy from the cheapest firm) than slightly different prices. For the duopoly case, existence, uniqueness, and characterization results are provided. Linear examples are given with 2 and n firms. Copyright 1992 by MIT Press.
(This abstract was borrowed from another version of this item.)
(This abstract was borrowed from another version of this item.)

Suggested Citation

  • ALLEN, Beth & THISSE, Jacques, 1990. "Price equilibria in pure strategies for homogeneous oligopoly," LIDAM Discussion Papers CORE 1990034, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE).
    • Handle: RePEc:cor:louvco:1990034
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    1. Jeffrey M. Perloff & Steven C. Salop, 1985. "Equilibrium with Product Differentiation," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 52(1), pages 107-120.
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    Cited by:

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    3. Canoy, Marcel & Weddepohl, Claus, 1995. "Alternative conjectures in a Bertrand-Edgeworth model," European Journal of Political Economy, Elsevier, vol. 11(3), pages 577-598, September.
    4. Soeiro, Renato & Adrego Pinto, Alberto, 2019. "Social power as a solution to the Bertrand Paradox," MPRA Paper 94271, University Library of Munich, Germany.
    5. Schmitt, Stefanie Y., 2022. "Competition with limited attention to quality differences," BERG Working Paper Series 184, Bamberg University, Bamberg Economic Research Group.
    6. Renato Soeiro & Alberto A. Pinto, 2023. "Negative network effects and asymmetric pure price equilibria," Portuguese Economic Journal, Springer;Instituto Superior de Economia e Gestao, vol. 22(1), pages 99-124, January.

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