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Price equilibria in pure strategies for homogeneous oligopoly

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  • ALLEN, Beth
  • THISSE, Jacques-François

Abstract

For a homogeneous product oligopoly market, possibilities for pure strategy Nash equilibria in prices are studied. Consumers, who each nonstrategically purchase one unit up to a common reservation price, are hypothesized to be more concerned with large price differences (and therefore buy from the cheapest firm) than slightly different prices. For the duopoly case, existence, uniqueness, and characterization results are provided. Linear examples are given with 2 and n firms. Copyright 1992 by MIT Press.
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Suggested Citation

  • ALLEN, Beth & THISSE, Jacques-François, 1992. "Price equilibria in pure strategies for homogeneous oligopoly," LIDAM Reprints CORE 1008, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE).
    • Handle: RePEc:cor:louvrp:1008
    DOI: 10.1111/j.1430-9134.1992.00063.x
    Note: In : Journal of Economics and Management Strategy, 1(1), 63-81, 1992
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    References listed on IDEAS

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    1. Perloff, Jeffrey M & Salop, Steven, 1984. "Equilibrium with product differentiation," Department of Agricultural & Resource Economics, UC Berkeley, Working Paper Series qt4cq0m6s3, Department of Agricultural & Resource Economics, UC Berkeley.
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    3. Canoy, Marcel & Weddepohl, Claus, 1995. "Alternative conjectures in a Bertrand-Edgeworth model," European Journal of Political Economy, Elsevier, vol. 11(3), pages 577-598, September.
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    6. Renato Soeiro & Alberto A. Pinto, 2023. "Negative network effects and asymmetric pure price equilibria," Portuguese Economic Journal, Springer;Instituto Superior de Economia e Gestao, vol. 22(1), pages 99-124, January.

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