Einy, Ezra; Haimanko, Ori; Moreno, Diego; Shitovitz, … - Economics Department, Ben Gurion University of the Negev - 2007
We show that when firms have asymmetric information about the market demand and theirs costs, a (Bayesian) Cournot equilibrium in pure strategies may not exist, or be unique. In fact, we are able to construct surprisingly simple and robust examples of duopolies with these features. However, we...