Kreps, David M.; Scheinkman, Jose A. - In: Bell Journal of Economics 14 (1983) 2, pp. 326-337
Bertrand's model of oligopoly, which gives perfectly competitive outcomes assumes that: (1) there is competition over prices and (2) production follows the realization of demand. We show that both of these assumptions are required. More precisely, consider a two-stage oligopoly game where,...