We consider choice of strategic variables under relative profit maximization in an asymmetric oligopoly with differentiated goods such that there are three firms, Firm 2 and 3 have the same cost function, but Firm 1 has a different cost function. We show that there are two pure...

We study the Bertrand equilibrium in duopoly in which two firms produce a homogeneous good under quadratic cost functions, and they seek to maximize the weighted sum of their absolute and relative profits. We show that there exists a range of the equilibrium prices in duopolistic equilibria....

We study the choice of strategic variables by firms in a duopoly in which two firms produce differentiated substitutable goods and each firm maximizes its relative profit that is the difference between its profit and the profit of the rival firm. We consider a two stage game such that in the...