Jann, Ole; Schottmüller, Christoph - In: Journal of Mathematical Economics 57 (2015) C, pp. 31-37
We show that there is a unique correlated equilibrium, identical to the unique Nash equilibrium, in the classic Bertrand oligopoly model with homogeneous goods and identical marginal costs. This provides a theoretical underpinning for the so-called “Bertrand paradox” as well as its most...