De Francesco, Massimo A. (2008): Existence of pure strategy equilibria in Bertrand-Edgeworth games with imperfect divisibility of money.
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This paper incorporates imperfect divisibility of money in a price game where a given number of identical firms produce a homogeneous product at constant unit cost up to capacity. We find necessary and sufficient conditions for the existence of a pure strategy equilibrium. Unlike in the continuous action space case, under discrete pricing there may be a range of symmetric pure strategy equilibria - which we fully characterize - a range which may or may not include the competitive price. Also, we determine the maximum number of such equilibria when competitive pricing is itself an equilibrium.
|Item Type:||MPRA Paper|
|Original Title:||Existence of pure strategy equilibria in Bertrand-Edgeworth games with imperfect divisibility of money|
|Keywords:||Bertrand-Edgeworth competition; Price game; Oligopoly; Pure strategy equilibrium; Discrete pricing|
|Subjects:||L - Industrial Organization > L1 - Market Structure, Firm Strategy, and Market Performance > L13 - Oligopoly and Other Imperfect Markets
D - Microeconomics > D4 - Market Structure, Pricing, and Design > D43 - Oligopoly and Other Forms of Market Imperfection
C - Mathematical and Quantitative Methods > C7 - Game Theory and Bargaining Theory > C72 - Noncooperative Games
|Depositing User:||Massimo A. De Francesco|
|Date Deposited:||29. Sep 2008 09:18|
|Last Modified:||25. Feb 2013 12:33|
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