RANDON, EMANUELA; SIMMONS, PETER - In: Journal of Public Economic Theory 12 (2010) 2, pp. 249-279
Generally, two facts occur with strategic complementarities and fixed prices: (i) the equilibria are multiple and (ii) if the complementarities are strong, the law of demand is violated and the equilibrium is unstable. In this paper, we analyse the effect of price flexibility on these features...