This paper formalizes, for the labor market, the traditional view that competition among the sellers leads to a fall in prices so long as there is excess supply. First we show that, at a Nash equilibrium of the one-period game, wages are set equal to the Walrasian wage. Then, similarly as in...

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...

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...