Article ID Journal Published Year Pages File Type
9549212 Economics Letters 2005 5 Pages PDF
Abstract
Consider a Bertrand-Edgeworth duopoly with linear cost functions. If the firms produce to stock then no Nash equilibrium in pure strategies exists. If, however, the firms produce to order then all subgame perfect Nash equilibria involve the firms charging a price equal to marginal cost.
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Related Topics
Social Sciences and Humanities Economics, Econometrics and Finance Economics and Econometrics
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Bertrand-Edgeworth duopoly with linear costs: A tale of two paradoxes
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