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Equilibrium payoffs in a Bertrand-Edgeworth model with product differentiation

Author

Listed:
  • Xavier Wauthy

    (CEREC, Facultés universitaires Saint-Louis)

  • Nicolas Boccard

    (University of Girona)

Abstract

In this note, we consider a Bertrand-Edgeworth duopoly model in which products are differentiated ”à la Hotelling”. We assumine that only one of the two firms faces a capacity constraint. For this particular case, we characterize the equilibrium payoff of the unconstrained firm for the complete domain of capacity levels.

Suggested Citation

  • Xavier Wauthy & Nicolas Boccard, 2005. "Equilibrium payoffs in a Bertrand-Edgeworth model with product differentiation," Economics Bulletin, AccessEcon, vol. 12(11), pages 1-8.
    • Handle: RePEc:ebl:ecbull:eb-05l10008
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    References listed on IDEAS

    as
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    Cited by:

    1. WAUTHY, Xavier Y., 2014. "From Bertrand to Cournot via Kreps and Scheinkman: a hazardous journey," LIDAM Discussion Papers CORE 2014026, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE).
    2. Andrea Pierce & Debapriya Sen, 2014. "Outsourcing versus technology transfer: Hotelling meets Stackelberg," Journal of Economics, Springer, vol. 111(3), pages 263-287, April.
    3. Jason J. Lepore & Aric P. Shafran, 2013. "Consumer Rationing and Cournot Outcomes: Experimental Evidence," Southern Economic Journal, John Wiley & Sons, vol. 79(3), pages 727-746, January.

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    More about this item

    Keywords

    Bertrand-Edgeworth Competition;

    JEL classification:

    • L1 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance

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