Details

Autor(en) / Beteiligte

• Dastidar, Krishnendu Ghosh

Titel

Bertrand equilibrium with subadditive costs

Ist Teil von

• Economics letters, 2011-08, Vol.112 (2), p.202-204

Ort / Verlag

Amsterdam: Elsevier B.V

Erscheinungsjahr

2011

Link zum Volltext

Quelle

Alma/SFX Local Collection

Beschreibungen/Notizen

• We show here, in contrast to recent results, that if firms have different cost functions (that are strictly subadditive), such that the ‘monopoly breakeven prices’ are different, then in a homogeneous product duopoly there is always a Bertrand equilibrium (either in pure strategies or in mixed strategies). ► We consider a price setting game in a homogeneous product oligopoly. ► If costs are strictly subadditive then no Bertrand equilibrium exists. ► However, asymmetry in costs restores the existence of an equilibrium.