IDEAS home Printed from https://ideas.repec.org/p/wsu/wpaper/tgsmith-5.html
   My bibliography  Save this paper

Quality Uncertainty as Resolution of the Bertrand Paradox

Author

Listed:
  • Attila Tasnadi
  • Trenton Smith
  • Andrew Hanks

    (School of Economic Sciences, Washington State University)

Abstract

We show that in a homogeneous-good duopoly market with quality uncertainty and constant unit costs, the Bertrand paradox (i.e., marginal cost pricing) can be avoided.

Suggested Citation

  • Attila Tasnadi & Trenton Smith & Andrew Hanks, 2010. "Quality Uncertainty as Resolution of the Bertrand Paradox," Working Papers 2010-1, School of Economic Sciences, Washington State University.
    • Handle: RePEc:wsu:wpaper:tgsmith-5
    as

    Download full text from publisher

    File URL: http://faculty.ses.wsu.edu/WorkingPapers/TSmith/wp2010-1.pdf
    File Function: First version, 2010
    Download Restriction: no
    ---><---

    Other versions of this item:

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Feng Jie Xie & Jing Shi, 2018. "The Evolution of Price Competition Game on Complex Networks," Complexity, Hindawi, vol. 2018, pages 1-13, July.
    2. Makoto Yano & Takashi Komatsubara, 2018. "Price competition or price leadership," Economic Theory, Springer;Society for the Advancement of Economic Theory (SAET), vol. 66(4), pages 1023-1057, December.
    3. Andrew Hanks & Trenton Smith & Attila Tasnadi, 2010. "Opportunity Knocks: An Economic Analysis of Television Advertisements," Working Papers 2010-18, School of Economic Sciences, Washington State University.

    More about this item

    Keywords

    oligopoly; endogenous preferences; threshold utility;
    All these keywords.

    JEL classification:

    • L13 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Oligopoly and Other Imperfect Markets
    • D81 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Criteria for Decision-Making under Risk and Uncertainty

    NEP fields

    This paper has been announced in the following NEP Reports:

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:wsu:wpaper:tgsmith-5. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Danielle Engelhardt (email available below). General contact details of provider: https://edirc.repec.org/data/ecwsuus.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.