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On equilibria in duopolies with finite strategy spaces

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  • Kalyan Talluri

Abstract

We will call a game a reachable (pure strategy) equilibria game if starting from any strategy by any player, by a sequence of best-response moves we are able to reach a (pure strategy) equilibrium. We give a characterization of all finite strategy space duopolies with reachable equilibria. We describe some applications of the sufficient conditions of the characterization.

Suggested Citation

  • Kalyan Talluri, 2003. "On equilibria in duopolies with finite strategy spaces," Economics Working Papers 701, Department of Economics and Business, Universitat Pompeu Fabra.
    • Handle: RePEc:upf:upfgen:701
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    File URL: https://econ-papers.upf.edu/papers/701.pdf
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    References listed on IDEAS

    as
    1. Kalyan Talluri & Garrett van Ryzin, 2000. "Revenue management under general discrete choice model of consumer behavior," Economics Working Papers 533, Department of Economics and Business, Universitat Pompeu Fabra, revised Oct 2001.
    2. Marc Dudey, 1992. "Dynamic Edgeworth-Bertrand Competition," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 107(4), pages 1461-1477.
    3. Gérard P. Cachon, 2001. "Stock Wars: Inventory Competition in a Two-Echelon Supply Chain with Multiple Retailers," Operations Research, INFORMS, vol. 49(5), pages 658-674, October.
    4. Xavier Vives, 2001. "Oligopoly Pricing: Old Ideas and New Tools," MIT Press Books, The MIT Press, edition 1, volume 1, number 026272040x, April.
    5. Steven A. Lippman & Kevin F. McCardle, 1997. "The Competitive Newsboy," Operations Research, INFORMS, vol. 45(1), pages 54-65, February.
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    Cited by:

    1. Houyuan Jiang & Zhan Pang, 2011. "Network capacity management under competition," Computational Optimization and Applications, Springer, vol. 50(2), pages 287-326, October.
    2. Kalyan Talluri & Víctor Martínez de Albéniz, 2010. "Dynamic price competition with fixed capacities," Economics Working Papers 1205, Department of Economics and Business, Universitat Pompeu Fabra.
    3. Yuri Levin & Jeff McGill & Mikhail Nediak, 2009. "Dynamic Pricing in the Presence of Strategic Consumers and Oligopolistic Competition," Management Science, INFORMS, vol. 55(1), pages 32-46, January.

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    More about this item

    Keywords

    duopoly; equilibria; revenue management; discrete-choice theory;
    All these keywords.

    JEL classification:

    • C0 - Mathematical and Quantitative Methods - - General
    • D4 - Microeconomics - - Market Structure, Pricing, and Design
    • C7 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory

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