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Mixed-strategy equilibrium of the symmetric production in advance game: the missing case

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  • Tasnádi, Attila

Abstract

The mixed-strategy equilibrium of the symmetric production-in-advance type capacity-constrained Bertrand-Edgeworth duopoly game has not been derived analytically over the entire range of intermediate capacities in the literature. Tasnádi (2020) constructed a symmetric mixed-strategy equilibrium for the production-in-advance game for a large range of intermediate capacities. In this paper we derive for the missing region a symmetric mixed-strategy equilibrium analytically.

Suggested Citation

  • Tasnádi, Attila, 2022. "Mixed-strategy equilibrium of the symmetric production in advance game: the missing case," Corvinus Economics Working Papers (CEWP) 2022/06, Corvinus University of Budapest.
    • Handle: RePEc:cvh:coecwp:2022/06
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    File URL: https://unipub.lib.uni-corvinus.hu/7787/
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    More about this item

    Keywords

    Price-quantity games; Bertrand-Edgeworth competition; inventories;
    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

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