De Francesco, Massimo A. (2008): Existence of pure strategy equilibria in BertrandEdgeworth games with imperfect divisibility of money.

PDF
MPRA_paper_10826.pdf Download (179kB)  Preview 
Abstract
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 BertrandEdgeworth games with imperfect divisibility of money 
Language:  English 
Keywords:  BertrandEdgeworth 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 
Item ID:  10826 
Depositing User:  Massimo A. De Francesco 
Date Deposited:  29. Sep 2008 09:18 
Last Modified:  25. Feb 2013 12:33 
References:  Dixon, H. D. (1993), Integer pricing and BertrandEdgeworth oligopoly with strictly convex costs: is it worth more than a penny?, Bulletin of Economic Research, 45, 257268. Chowdhuri, P. R. (2008), BertrandEdgeworth equilibrium with a large number of firms, International Journal of Industrial Organization, 26, 746761. Tirole, J. (1988), The theory of industrial organization, Cambridge, Mass.: MIT Press. Vives, X. (1986), Rationing rules and BertrandEdgeworth equilibria in large markets, Economics Letters, 21, 113116. 
URI:  https://mpra.ub.unimuenchen.de/id/eprint/10826 