|
| |
| 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
|
| |
| Manuscript Received : Nov 04 2008 | | Manuscript Accepted : Nov 04 2008 |
|
