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On price equilibrium with multi-product firms

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  • Sándor, Z.

Abstract

In this paper we provide a result that shows existence and uniqueness of Nash equilibrium in cases in which existent methods are problematic to apply. We employ this result to the model with simple logit demand, and show existence and uniqueness of price equilibrium when firms produce multiple non-symmetric products. Our proof for this case is based only on the intuitive assumption that market shares are decreasing in own price.

Suggested Citation

  • Sándor, Z., 2004. "On price equilibrium with multi-product firms," Econometric Institute Research Papers EI 2004-50, Erasmus University Rotterdam, Erasmus School of Economics (ESE), Econometric Institute.
    • Handle: RePEc:ems:eureir:1828
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    References listed on IDEAS

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    1. Mas-Colell,Andreu, 1990. "The Theory of General Economic Equilibrium," Cambridge Books, Cambridge University Press, number 9780521388702.
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    7. Peitz, Martin, 2000. "Aggregation in a Model of Price Competition," Journal of Economic Theory, Elsevier, vol. 90(1), pages 1-38, January.
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    More about this item

    Keywords

    Nash-Bertrand; logit; price competition; product differentiation;
    All these keywords.

    JEL classification:

    • D43 - Microeconomics - - Market Structure, Pricing, and Design - - - Oligopoly and Other Forms of Market Imperfection

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