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ralph lauren polo

Massimo A. De Francesco
''Existence of pure strategy equilibrium in Bertrand-Edgeworth games with imperfect divisibility of money''
( 2008, Vol. 12 No.29 )
This paper incorporates imperfect divisibility of money in a price game where a given number of identical firms produce a homogeneous product at constant unit cost up to capacity. We find necessary and sufficient conditions for the existence of a pure strategy equilibrium. Unlike in the continuous action space case, with discrete pricing there may be a range of symmetric pure strategy equilibria - which we fully characterize - a range which may or may not include the competitive price. Also, we determine the maximum number of such equilibria when competitive pricing is itself an equilibrium.
Keywords: Bertrand-Edgeworth competition
JEL: L1 - Market Structure, Firm Strategy, and Market Performance: General
C7 - Game Theory and Bargaining Theory:General
Manuscript Received : Nov 04 2008 Manuscript Accepted : Nov 04 2008

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