Correa, José R.; Figueroa, Nicolás; Stier-Moses, … - Centro de Economía Aplicada, Universidad de Chile - 2008
We study a game that models a market in which heterogeneous producers of perfect substitutes make pricing decisions in a first stage, followed by consumers that select a producer that sells at lowest price. As opposed to Cournot or Bertrand competition, producers submit a price function to the...