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Further results on the Bertrand game with different marginal costs

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  • De Nijs, Romain

Abstract

This note provides an alternative construction to Blume (2003) of equilibria in the standard model of Bertrand competition with homogeneous products and different marginal costs that achieve the conventional outcome. In addition, I provide a means to select one of these equilibria.

Suggested Citation

  • De Nijs, Romain, 2012. "Further results on the Bertrand game with different marginal costs," Economics Letters, Elsevier, vol. 116(3), pages 502-503.
    • Handle: RePEc:eee:ecolet:v:116:y:2012:i:3:p:502-503
    DOI: 10.1016/j.econlet.2012.04.055
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    References listed on IDEAS

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    1. Blume, Andreas, 2003. "Bertrand without fudge," Economics Letters, Elsevier, vol. 78(2), pages 167-168, February.
    2. Kartik, Navin, 2011. "A note on undominated Bertrand equilibria," Economics Letters, Elsevier, vol. 111(2), pages 125-126, May.
    3. Varian, Hal R, 1980. "A Model of Sales," American Economic Review, American Economic Association, vol. 70(4), pages 651-659, September.
    4. Narasimhan, Chakravarthi, 1988. "Competitive Promotional Strategies," The Journal of Business, University of Chicago Press, vol. 61(4), pages 427-449, October.
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    Cited by:

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    More about this item

    Keywords

    Bertrand competition; Mixed strategies; Non-identical costs;
    All these keywords.

    JEL classification:

    • C72 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Noncooperative Games
    • D43 - Microeconomics - - Market Structure, Pricing, and Design - - - Oligopoly and Other Forms of Market Imperfection
    • L11 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Production, Pricing, and Market Structure; Size Distribution of Firms

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