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A New Look at the Classical Bertrand Duopoly

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  • Rabah Amir
  • Igor V. Evstigneev

Abstract

The paper provides necessary and sufficient conditions for the uniqueness of pure-strategy Nash equilibrium in Bertrand duopoly with a homogeneous product. The main condition is elementary, easy to interpret, and nests all known sufficient conditions in the literature.

Suggested Citation

  • Rabah Amir & Igor V. Evstigneev, 2017. "A New Look at the Classical Bertrand Duopoly," Economics Discussion Paper Series 1702, Economics, The University of Manchester.
    • Handle: RePEc:man:sespap:1702
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    File URL: http://hummedia.manchester.ac.uk/schools/soss/economics/discussionpapers/EDP-1702.pdf
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    References listed on IDEAS

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    1. Amir, Rabah & Stepanova, Anna, 2006. "Second-mover advantage and price leadership in Bertrand duopoly," Games and Economic Behavior, Elsevier, vol. 55(1), pages 1-20, April.
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    Cited by:

    1. Paolo Bertoletti, 2022. "The dual of Bertrand with homogenous products is Cournot with perfect complements," Economic Theory Bulletin, Springer;Society for the Advancement of Economic Theory (SAET), vol. 10(2), pages 183-189, October.
    2. R. A. Edwards & R. R. Routledge, 2023. "Existence and uniqueness of Nash equilibrium in discontinuous Bertrand games: a complete characterization," International Journal of Game Theory, Springer;Game Theory Society, vol. 52(2), pages 569-586, June.
    3. Anne-Christine Barthel & Eric Hoffmann, 2020. "On the existence and stability of equilibria in N-firm Cournot–Bertrand oligopolies," Theory and Decision, Springer, vol. 88(4), pages 471-491, May.

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    More about this item

    JEL classification:

    • C72 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Noncooperative Games
    • L10 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - General

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