Prabal, Roy Chowdhury (2008): Bertrand Competition with Nonrigid Capacity Constraints.

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Abstract
We examine a model of Bertrand competition with nonrigid capacity constraints, so that by incurring an additional cost, firms can produce beyond capacity. We find that there is an interval of prices such that a price can be sustained as a pure strategy Nash equilibrium if and only if it lies in this interval. We then examine the properties of this set as (a) the number of firms becomes large and (b) the capacity cost increases.
Item Type:  MPRA Paper 

Original Title:  Bertrand Competition with Nonrigid Capacity Constraints 
Language:  English 
Subjects:  D  Microeconomics > D5  General Equilibrium and Disequilibrium L  Industrial Organization > L2  Firm Objectives, Organization, and Behavior 
Item ID:  9172 
Depositing User:  Prabal Roy Chowdhury 
Date Deposited:  17. Jun 2008 13:59 
Last Modified:  12. Feb 2013 12:18 
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URI:  https://mpra.ub.unimuenchen.de/id/eprint/9172 