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Price Competition on a Buyer-Seller Network

Lever, Carlos R. - 2008

network structure models the local interaction of firms and consumers. We solve for the unique equilibrium of duopolistic … price competition and study the implications of network structure on pricing behavior and welfare. Aggregate surplus is … maximized with a fully connected network, which corresponds to perfect competition, and decreases monotonically as the network …

Persistent link: https://www.econbiz.de/10012722858

Number of firms, rationing, matching, and knowledge : a comprehensive study of variations in experimental Kreps-Scheinkman markets

Jacobs, Martin - 2016

This study provides a comprehensive picture of experimental Kreps-Scheinkman markets with capacity choice in the first stage and subsequent price competition at the second. We conduct seven different treatments of such markets, varying the number of firms, the demand rationing scheme, the...

Persistent link: https://www.econbiz.de/10011411149

Price Recall, Bertrand Paradox and Price Dispersion with Elastic Demand

Carvalho, Miguel - 2009

This paper studies the consequence of an imprecise recall of the price by the consumers in the Bertrand price competition model for a homogeneous good. It is shown that firms can exploit this weakness and charge prices above the competitive price. This markup increases for rougher recall of the...

Persistent link: https://www.econbiz.de/10013156472

On the Role of Patience in Collusive Bertrand Duopolies

Andersson, Ola - 2011

This paper analyzes the role of patience in a repeated Bertrand duopoly where firms bargain over which collusive price …

Persistent link: https://www.econbiz.de/10014178725

A Note on Evolutionary Stability of Bertrand Equilibrium

Hehenkamp, Burkhard; Leininger, Wolfgang - 1999

It is shown that the equilibrium notion of an evolutionary stable strategy (ESS) does have predictive power for standard models of Bertrand competition. This is in contrast to a recent claim by Qin and Stuart (1997). The claim is based on the observation that the solution concept ESS behaves...

Persistent link: https://www.econbiz.de/10014184323

Why is Cournot Cournot and Bertrand Bertrand? The Role of the Strategic Variable in One-Shot Oligopoly Games

Ten Kate, Adriaan - 2014

In Cournot games the strategic variable is output and players maximize profits assuming that the other players keep their outputs fixed. In Bertrand games the strategic variable is price and players assume the other players to keep their prices fixed. In this article I argue that it is not the...

Persistent link: https://www.econbiz.de/10013048759

Competitive and Bertrand Equilibria, With and Without Product Differentiation

Coloma, German - 2009

In this paper we show that a homogeneous-product market with multiple Bertrand equilibria becomes a market with a single Bertrand equilibrium when we introduce a small degree of product differentiation. When differentiation tends to zero, that Bertrand equilibrium converges to the unique...

Persistent link: https://www.econbiz.de/10013158272

Reconciling Cournot and Bertrand outcomes : a review

Kirui, Kipyegon Benard - 2013 - April 2013, first draft

This paper reconciles the Cournot and Bertrand Models of oligopolistic competition, highlighting its weaknesses and giving an opinion thereafter. The pertinent question in this paper is why Cournot (1838) ignored the price and Bertrand (1883) ignored the quantity? From the review, the main...

Persistent link: https://www.econbiz.de/10010380785

Passive backward acquisitions and downstream collusion

Shekhar, Shiva; Thomes, Tim Paul - 2020

We investigate the effects of passive backward acquisitions in their efficient upstream supplier on downstream firms' ability to collude in a dynamic game of price competition with homogeneous goods. We find that passive backward acquisitions impede downstream collusion. The main driver of our...

Persistent link: https://www.econbiz.de/10012297609

Competition between offline and online retailers with heterogeneous customers

Colombo, Stefano; Matsushima, Noriaki - 2019

We consider the spatial competition between two traditional physical (or offline) retailers and an Internet (or online) retailer where the efficiency of the latter differs from that of the former. We assume consumers are heterogeneous across two dimensions: (i) the costs of traveling to either...

Persistent link: https://www.econbiz.de/10012024739