Jann, Ole; Schottmüller, Christoph - Økonomisk Institut, Københavns Universitet - 2014
We show that there is a unique correlated equilibrium, identical to the unique Nash equilibrium, in the classic Bertrand oligopoly model with homogenous goods. This provides a theoretical underpinning for the so-called "Bertrand paradox" and also generalizes earlier results on mixed-strategy...