Cayseele, Patrick Van; Furth, Dave - In: Journal of Economic Studies 23 (1996) October, pp. 96-109
Solves von Stackelberg equilibria in a Bertrand-Edgeworth duopoly game. Shows that, initially, the environment is characterized by efficient rationing and capacity constraints. Since interest lies in sustaining monopoly outcomes from non-co-operative behaviour, introduces the buyout option,...