Roy Chowdhury, Prabal (2007): BertrandEdgeworth equilibrium with a large number of firms.

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Abstract
We examine a model of price competition with strictly convex costs where the firms simultaneously decide on both price and quantity, are free to supply less than the quantity demanded, and there is discrete pricing. If firms are symmetric then, for a large class of residual demand functions, there is a unique equilibrium in pure strategies whenever, for a fixed grid size, the number of firms is sufficiently large. Moreover, this equilibrium price is within a gridunit of the competitive price. The results go through to a large extent when the firms are asymmetric, or they are symmetric but play a two stage game and the tiebreaking rule is `weakly manipulable'.
Item Type:  MPRA Paper 

Institution:  Indian Statistical Institute, Delhi Center 
Original Title:  BertrandEdgeworth equilibrium with a large number of firms 
Language:  English 
Keywords:  Bertrand equilibrium; Edgeworth paradox; tiebreaking rule; rationing rule; folk theorem of perfect competition 
Subjects:  D  Microeconomics > D4  Market Structure, Pricing, and Design > D41  Perfect Competition D  Microeconomics > D4  Market Structure, Pricing, and Design > D43  Oligopoly and Other Forms of Market Imperfection L  Industrial Organization > L1  Market Structure, Firm Strategy, and Market Performance > L13  Oligopoly and Other Imperfect Markets 
Item ID:  3353 
Depositing User:  Prabal Roy Chowdhury 
Date Deposited:  30 May 2007 
Last Modified:  02 Oct 2019 09:51 
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URI:  https://mpra.ub.unimuenchen.de/id/eprint/3353 