Strategic Complementarity Conditions in Bertrand Oligopoly
This note relates to Topkis (1995). We establish via counterexample that:(i) A new monotone transformation of the firms' profit functions may lead to cardinal complementarity when the standard log and identity transformations both fail, and (ii) Topkis's notion of critical sufficient condition for monotone comparative statics of a firm cannot be extended to rely only on positive unit costs.
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