Bertrand's price competition in markets with fixed costs
Author
Abstract
Suggested Citation
Download full text from publisher
Other versions of this item:
- Alejandro Saporiti & German Coloma, 2008. "Bertrand's price competition in markets with fixed costs," RCER Working Papers 541, University of Rochester - Center for Economic Research (RCER).
References listed on IDEAS
- Dastidar, Krishnendu Ghosh, 1995. "On the Existence of Pure Strategy Bertrand Equilibrium," Economic Theory, Springer;Society for the Advancement of Economic Theory (SAET), vol. 5(1), pages 19-32, January.
- Telser, Lester G, 1991. "Industry Total Cost Functions and the Status of the Core," Journal of Industrial Economics, Wiley Blackwell, vol. 39(3), pages 225-240, March.
- Steffen Hoernig, 2007. "Bertrand Games and Sharing Rules," Economic Theory, Springer;Society for the Advancement of Economic Theory (SAET), vol. 31(3), pages 573-585, June.
- Grossman, Sanford J, 1981. "Nash Equilibrium and the Industrial Organization of Markets with Large Fixed Costs," Econometrica, Econometric Society, vol. 49(5), pages 1149-1172, September.
- Abbink, Klaus & Brandts, Jordi, 2008.
"24. Pricing in Bertrand competition with increasing marginal costs,"
Games and Economic Behavior, Elsevier, vol. 63(1), pages 1-31, May.
- Klaus Abbink & Jordi Brandts, 2003. "24. Pricing in Bertrand Competition with Increasing Marginal Costs," Working Papers 62, Barcelona Graduate School of Economics.
- Baumol, William J, 1977. "On the Proper Cost Tests for Natural Monopoly in a Multiproduct Industry," American Economic Review, American Economic Association, vol. 67(5), pages 809-822, December.
- John Morgan & Michael R. Baye, 2002. "Winner-take-all price competition," Economic Theory, Springer;Society for the Advancement of Economic Theory (SAET), vol. 19(2), pages 271-282.
- Baye, Michael R. & Morgan, John, 1999. "A folk theorem for one-shot Bertrand games," Economics Letters, Elsevier, vol. 65(1), pages 59-65, October.
- Hoernig, Steffen H., 2002. "Mixed Bertrand equilibria under decreasing returns to scale: an embarrassment of riches," Economics Letters, Elsevier, vol. 74(3), pages 359-362, February.
- Novshek, William & Chowdhury, Prabal Roy, 2003. "Bertrand equilibria with entry: limit results," International Journal of Industrial Organization, Elsevier, vol. 21(6), pages 795-808, June.
- Spulber, Daniel F, 1995. "Bertrand Competition When Rivals' Costs Are Unknown," Journal of Industrial Economics, Wiley Blackwell, vol. 43(1), pages 1-11, March.
- Panzar, John C., 1989. "Technological determinants of firm and industry structure," Handbook of Industrial Organization, in: R. Schmalensee & R. Willig (ed.), Handbook of Industrial Organization, edition 1, volume 1, chapter 1, pages 3-59, Elsevier.
- Makoto Yano, 2006. "A price competition game under free entry," Economic Theory, Springer;Society for the Advancement of Economic Theory (SAET), vol. 29(2), pages 395-414, October.
- Krishnendu Dastidar, 2001. "Collusive outcomes in price competition," Journal of Economics, Springer, vol. 73(1), pages 81-93, February.
- Chaudhuri, Prabal Ray, 1996. "The contestable outcome as a Bertrand equilibrium," Economics Letters, Elsevier, vol. 50(2), pages 237-242, February.
- Shapiro, Carl, 1989. "Theories of oligopoly behavior," Handbook of Industrial Organization, in: R. Schmalensee & R. Willig (ed.), Handbook of Industrial Organization, edition 1, volume 1, chapter 6, pages 329-414, Elsevier.
- Harrington, Joseph Jr., 1989. "A re-evaluation of perfect competition as the solution to the Bertrand price game," Mathematical Social Sciences, Elsevier, vol. 17(3), pages 315-328, June.
- Xavier Vives, 2001. "Oligopoly Pricing: Old Ideas and New Tools," MIT Press Books, The MIT Press, edition 1, volume 1, number 026272040x, September.
- Todd R. Kaplan & David Wettstein, 2000. "The possibility of mixed-strategy equilibria with constant-returns-to-scale technology under Bertrand competition," Spanish Economic Review, Springer;Spanish Economic Association, vol. 2(1), pages 65-71.
Citations
Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
Cited by:
- Matthew Andrews & Milan Bradonjic & Iraj Saniee, 2017. "Quantifying the Benefits of Infrastructure Sharing," Papers 1706.05735, arXiv.org.
- Robert R. Routledge, 2009. "Testable implications of the Bertrand model," The School of Economics Discussion Paper Series 0918, Economics, The University of Manchester.
Most related items
These are the items that most often cite the same works as this one and are cited by the same works as this one.- Saporiti Alejandro & Coloma Germán, 2010. "Bertrand Competition in Markets with Fixed Costs," The B.E. Journal of Theoretical Economics, De Gruyter, vol. 10(1), pages 1-30, June.
- Marie-Laure Cabon-Dhersin & Nicolas Drouhin, 2020.
"A general model of price competition with soft capacity constraints,"
Economic Theory, Springer;Society for the Advancement of Economic Theory (SAET), vol. 70(1), pages 95-120, July.
- Cabon-Dhersin Marie-Laure & Drouhin Nicolas, 2017. "A general model of price competition with soft capacity constraints," Working Papers 2017-56, Center for Research in Economics and Statistics.
- Marie-Laure Cabon-Dhersin & Nicolas Drouhin, 2020. "A general model of price competition with soft capacity constraints," Post-Print hal-02911612, HAL.
- Marie-Laure Cabon-Dhersin & Nicolas Drouhin, 2019. "A general model of price competition with soft capacity constraints," Post-Print halshs-01622930, HAL.
- Marie‐Laure Cabon‐Dhersin & Nicolas Drouhin, 2014.
"Tacit Collusion in a One‐Shot Game of Price Competition with Soft Capacity Constraints,"
Journal of Economics & Management Strategy, Wiley Blackwell, vol. 23(2), pages 427-442, June.
- Marie-Laure Cabon-Dhersin & Nicolas Drouhin, 2012. "Tacit collusion in a one-shot game of price competition with soft capacity constraints," Université Paris1 Panthéon-Sorbonne (Post-Print and Working Papers) hal-00709093, HAL.
- Marie-Laure Cabon-Dhersin & Nicolas Drouhin, 2014. "Tacit Collusion in a One-Shot Game of Price Competition with Soft Capacity Constraints," Université Paris1 Panthéon-Sorbonne (Post-Print and Working Papers) hal-00974270, HAL.
- Marie-Laure Cabon-Dhersin & Nicolas Drouhin, 2014. "Tacit Collusion in a One-Shot Game of Price Competition with Soft Capacity Constraints," Post-Print hal-01311142, HAL.
- Marie-Laure Cabon-Dhersin & Nicolas Drouhin, 2014. "Tacit Collusion in a One-Shot Game of Price Competition with Soft Capacity Constraints," Université Paris1 Panthéon-Sorbonne (Post-Print and Working Papers) hal-01311142, HAL.
- Marie-Laure Cabon-Dhersin & Nicolas Drouhin, 2014. "Tacit Collusion in a One-Shot Game of Price Competition with Soft Capacity Constraints," Post-Print hal-00974270, HAL.
- Marie-Laure Cabon-Dhersin & Nicolas Drouhin, 2012. "Tacit collusion in a one-shot game of price competition with soft capacity constraints," Working Papers hal-00709093, HAL.
- Marie-Laure Cabon-Dhersin & Nicolas Drouhin, 0.
"A general model of price competition with soft capacity constraints,"
Economic Theory,
Springer;Society for the Advancement of Economic Theory (SAET), vol. 0, pages 1-26.
- Cabon-Dhersin Marie-Laure & Drouhin Nicolas, 2017. "A general model of price competition with soft capacity constraints," Working Papers 2017-56, Center for Research in Economics and Statistics.
- Marie-Laure Cabon-Dhersin & Nicolas Drouhin, 2019. "A general model of price competition with soft capacity constraints," Post-Print halshs-01622930, HAL.
- Marie-Laure Cabon-Dhersin & Nicolas Drouhin, 2010.
"The end of the Bertrand Paradox ?,"
Post-Print
halshs-00542486, HAL.
- Marie-Laure Cabon-Dhersin & Nicolas Drouhin, 2010. "The end of the Bertrand Paradox?," Documents de travail du Centre d'Economie de la Sorbonne 10079, Université Panthéon-Sorbonne (Paris 1), Centre d'Economie de la Sorbonne.
- Marie-Laure Cabon-Dhersin & Nicolas Drouhin, 2010. "The end of the Bertrand Paradox ?," Université Paris1 Panthéon-Sorbonne (Post-Print and Working Papers) halshs-00542486, HAL.
- Hoernig, Steffen, 2005.
"Bertrand Equilibria and Sharing Rules,"
CEPR Discussion Papers
4972, C.E.P.R. Discussion Papers.
- Steffen Hoernig, 2005. "Bertrand equilibria and sharing rules," FEUNL Working Paper Series wp468, Universidade Nova de Lisboa, Faculdade de Economia.
- Makoto Yano & Takashi Komatsubara, 2018. "Price competition or price leadership," Economic Theory, Springer;Society for the Advancement of Economic Theory (SAET), vol. 66(4), pages 1023-1057, December.
- Roy Chowdhury, Prabal, 2009. "Free Entry Bertrand Competition," MPRA Paper 17837, University Library of Munich, Germany.
- Roy Chowdhury, Prabal, 2008.
"Bertrand-Edgeworth equilibrium with a large number of firms,"
International Journal of Industrial Organization, Elsevier, vol. 26(3), pages 746-761, May.
- Prabal Roy Chowdhury, 2004. "Bertrand-Edgeworth equilibrium with a large number of firms," Indian Statistical Institute, Planning Unit, New Delhi Discussion Papers 04-12, Indian Statistical Institute, New Delhi, India.
- Roy Chowdhury, Prabal, 2007. "Bertrand-Edgeworth equilibrium with a large number of firms," MPRA Paper 3353, University Library of Munich, Germany.
- R. R. Routledge & R. A. Edwards, 2020. "Ambiguity and price competition," Theory and Decision, Springer, vol. 88(2), pages 231-256, March.
- Prabal Roy Chowdhury, 2004. "Bertrand-Edgeworth equilibrium with a large number of firms," Discussion Papers 04-12, Indian Statistical Institute, Delhi.
- Germán Coloma & Alejandro Saporiti, 2006. "Bertrand equilibria in markets with fixed costs," The School of Economics Discussion Paper Series 0627, Economics, The University of Manchester.
- Prabal Roy Chowdhury, 2004. "Bertrand-Edgeworth equilibrium: Manipulable residual demand," Discussion Papers 04-15, Indian Statistical Institute, Delhi.
- Matsumura, Toshihiro, 2012. "Welfare consequence of an asymmetric regulation in a mixed Bertrand duopoly," Economics Letters, Elsevier, vol. 115(1), pages 94-96.
- Roy Chowdhury, Prabal, 2009.
"Bertrand competition with non-rigid capacity constraints,"
Economics Letters, Elsevier, vol. 103(1), pages 55-58, April.
- Prabal, Roy Chowdhury, 2008. "Bertrand Competition with Non-rigid Capacity Constraints," MPRA Paper 9172, University Library of Munich, Germany.
- Prabal Roy Chowdhury, 2009. "Bertrand competition with non-rigid capacity constraints," Indian Statistical Institute, Planning Unit, New Delhi Discussion Papers 09-02, Indian Statistical Institute, New Delhi, India.
- Steffen Hoernig, 2007. "Bertrand Games and Sharing Rules," Economic Theory, Springer;Society for the Advancement of Economic Theory (SAET), vol. 31(3), pages 573-585, June.
- Andersson, Ola & Argenton, Cédric & Weibull, Jörgen W., 2014.
"Robustness to strategic uncertainty,"
Games and Economic Behavior, Elsevier, vol. 85(C), pages 272-288.
- Andersson, Ola & Argenton, Cédric & Weibull, Jörgen W., 2012. "Robustness to Strategic Uncertainty," Working Paper Series 910, Research Institute of Industrial Economics.
- Germán Coloma, 2010.
"El número óptimo de empresas bajo competencia de Bertrand,"
Estudios de Economia, University of Chile, Department of Economics, vol. 37(2 Year 20), pages 189-205, December.
- Germán Coloma, 2009. "El número óptimo de empresas bajo competencia de Bertrand," CEMA Working Papers: Serie Documentos de Trabajo. 397, Universidad del CEMA.
- Makoto Yano & Takashi Komatsubara, 2012. "Price Competition or Tacit Collusion," KIER Working Papers 807, Kyoto University, Institute of Economic Research.
- Robert R. Routledge, 2009. "On the existence of Bayesian Bertrand equilibrium," The School of Economics Discussion Paper Series 0917, Economics, The University of Manchester.
More about this item
Keywords
Bertrand competition; cost subadditivity; fixed costs; natural monopoly.;All these keywords.
JEL classification:
- D43 - Microeconomics - - Market Structure, Pricing, and Design - - - Oligopoly and Other Forms of Market Imperfection
- L13 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Oligopoly and Other Imperfect Markets
NEP fields
This paper has been announced in the following NEP Reports:- NEP-BEC-2009-06-10 (Business Economics)
- NEP-COM-2009-06-10 (Industrial Competition)
- NEP-IND-2009-06-10 (Industrial Organization)
- NEP-MIC-2009-06-10 (Microeconomics)
Statistics
Access and download statisticsCorrections
All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:roc:rocher:549. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Richard DiSalvo). General contact details of provider: .
If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.
If CitEc recognized a reference but did not link an item in RePEc to it, you can help with this form .
If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.
Please note that corrections may take a couple of weeks to filter through the various RePEc services.