We consider a homogeneous product market where, given their capacities, existing firms compete in prices. First, pricing at the constant short-run average-marginal cost - i. e., Bertrand outcome - is shown to be a Nash equilibrium of the static price game provided total capacity is sufficiently...

We model long-run price competition as a two-stage entry-capacity and pricing game among many potential entrants. Each solution of the game is found to reproduce a long-run competitive equilibrium provided the latter is characterized by a sufficiently large market. This result extends to the...

Before solving the capacity-pricing game for oligopoly, Boccard and Wauthy (2000) argue that, as under duopoly, at a mixed-strategy equilibrium of the pricing game the largest firm's payoff equals the Stackelberg follower profit. We point to a nontrivial mistake in their argument and see how...

This note analyzes the repeated interaction among buyers of a homogeneous good, in a setting of imperfect buyer mobility. The buyers are assumed to play a dynamic game of imperfect information: at each stage every buyer chooses which seller to visit without knowing the current and past choices...

We examine a Bertrand-Edgeworth model of competition in a labour market where the workers simultaneously set wages disregarding any influence their current decision may have on opponents' future decisions. The iterated best response process is shown to converge in finite time to a Bertrand-Nash...

This paper incorporates imperfect divisibility of money in a price game where a given number of identical firms produce a homogeneous product at constant unit cost up to capacity. We find necessary and sufficient conditions for the existence of a pure strategy equilibrium. Unlike in the...

The paper extends the analysis of price competition among capacity-constrained sellers beyond the cases of duopoly and symmetric oligopoly.We first provide some general results for the oligopoly and then focus on the triopoly, providing a complete characterization of the mixed strategy...

The paper extends the analysis of price competition among capacity-constrained sellers beyond the cases of duopoly and symmetric oligopoly. We first provide some general results for the oligopoly and then focus on the triopoly, providing a complete characterization of the mixed strategy...