Equilibrium payoffs in a Bertrand-Edgeworth model with product differentiation
In this note, we consider a Bertrand-Edgeworth duopoly model in which products are differentiated ”à la Hotelling”. We assumine that only one of the two firms faces a capacity constraint. For this particular case, we characterize the equilibrium payoff of the unconstrained firm for the complete domain of capacity levels.
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|Note:||In : Economics Bulletin, 12(11), 1-8, 2005|
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