Capra, C. Monica; Goeree, Jacob K.; Gomez, Rosario; … - University of Virginia, Department of Economics - 2000
This paper considers a duopoly price-choice game in which the unique Nash equilibrium is the Bertrand outcome. Price competition, however, is imperfect in the sense that the market share of the high-price firm is not zero. Economic intuition suggests that price levels should be positively...