Bertrand-Edgeworth games under oligopoly with a complete characterization for the triopoly
The paper extends the analysis of price competition among capacity-constrained sellers beyond the cases of duopoly and symmetric oligopoly. We first provide some general results for the oligopoly and then focus on the triopoly, providing a complete characterization of the mixed strategy equilibrium of the price game. The region of the capacity space where the equilibrium is mixed is partitioned according to the features of the mixed strategy equilibrium arising in each subregion. Then computing the mixed strategy equilibrium becomes a quite simple task. The analysis reveals features of the mixed strategy equilibrium which do not arise in the duopoly (some of them have also been discovered by Hirata (2008)).
|Date of creation:||07 May 2008|
|Date of revision:|
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- Vives, Xavier, 1986. "Rationing rules and Bertrand-Edgeworth equilibria in large markets," Economics Letters, Elsevier, vol. 21(2), pages 113-116.
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83-08, C.V. Starr Center for Applied Economics, New York University.
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- De Francesco, Massimo A. & Salvadori, Neri, 2008.
"Bertrand-Edgeworth games under oligopoly with a complete characterization for the triopoly,"
10767, University Library of Munich, Germany, revised 26 Sep 2008.
- De Francesco, Massimo A. & Salvadori, Neri, 2008. "Bertrand-Edgeworth games under oligopoly with a complete characterization for the triopoly," MPRA Paper 8634, University Library of Munich, Germany.
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International Economic Review,
Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 13(1), pages 111-22, February.
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- repec:ebl:ecbull:v:4:y:2003:i:30:p:1-8 is not listed on IDEAS
- BOCCARD , Nicolas & WAUTHY, Xavier, .
"Bertrand competition and Cournot outcomes: futher results,"
CORE Discussion Papers RP
1474, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE).
- Boccard, Nicolas & Wauthy, Xavier, 2000. "Bertrand competition and Cournot outcomes: further results," Economics Letters, Elsevier, vol. 68(3), pages 279-285, September.
- Dan Kovenock & Raymond J. Deneckere, 1996. "Bertrand-Edgeworth duopoly with unit cost asymmetry (*)," Economic Theory, Springer, vol. 8(1), pages 1-25.
- Simon Loertscher, 2005. "Market making oligopoly," Diskussionsschriften dp0512, Universitaet Bern, Departement Volkswirtschaft.
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