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Bertrand Game Under Cost Function

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  • Partha Pratim Dube

Abstract

This paper analyses price competition in the case of monopoly and duopoly considering cost function under the minimum money expensed with demand probability and shows the existence of pure strategy Nash equilibrium of a Bertrand game. It also finds price strategies of two firms to earn maximum profits in a Bertrand game.

Suggested Citation

  • Partha Pratim Dube, 2018. "Bertrand Game Under Cost Function," Australian Economic Papers, Wiley Blackwell, vol. 57(4), pages 489-496, December.
    • Handle: RePEc:bla:ausecp:v:57:y:2018:i:4:p:489-496
    DOI: 10.1111/1467-8454.12133
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    References listed on IDEAS

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    6. Sinha, Uday Bhanu, 2016. "Optimal value of a patent in an asymmetric Cournot duopoly market," Economic Modelling, Elsevier, vol. 57(C), pages 93-105.
    7. 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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    Cited by:

    1. Wentao Yi & Chunqiao Tan, 2019. "Bertrand Game with Nash Bargaining Fairness Concern," Complexity, Hindawi, vol. 2019, pages 1-22, August.

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