Munich Personal RePEc Archive

Bertrand-Edgeworth games under oligopoly with a complete characterization for the triopoly

De Francesco, Massimo A. and Salvadori, Neri (2008): Bertrand-Edgeworth games under oligopoly with a complete characterization for the triopoly.

[img]
Preview
PDF
MPRA_paper_8634.pdf

Download (272kB) | Preview

Abstract

The paper extends the analysis of price competition among capacity-constrained sellers beyond the cases of duopoly and symmetric oligopoly. We first provide some general results for the oligopoly and then focus on the triopoly, providing a complete characterization of the mixed strategy equilibrium of the price game. The region of the capacity space where the equilibrium is mixed is partitioned according to the features of the mixed strategy equilibrium arising in each subregion. Then computing the mixed strategy equilibrium becomes a quite simple task. The analysis reveals features of the mixed strategy equilibrium which do not arise in the duopoly (some of them have also been discovered by Hirata (2008)).

UB_LMU-Logo
MPRA is a RePEc service hosted by
the Munich University Library in Germany.