Mixed Bertrand equilibria under decreasing returns to scale: An embarrassment of riches

Steffen Hoernig

doi:10.1016/S0165-1765(01)00564-X

Mixed Bertrand equilibria under decreasing returns to scale: An embarrassment of riches

Steffen Hoernig

NOVA School of Business and Economics (NOVA SBE)

Research output: Contribution to journal › Article › peer-review

22 Citations (Scopus)

Abstract

We show that under decreasing returns to scale there are continua of non-zero profit mixed Bertrand equilibria where firms randomise between any finite number of pure equilibrium prices. Unlike the previous literature we do not assume infinite monopoly profit.

Original language	English
Pages (from-to)	359-362
Number of pages	4
Journal	Economics Letters
Volume	74
Issue number	3
DOIs	https://doi.org/10.1016/S0165-1765(01)00564-X
Publication status	Published - Feb 2002

Keywords

Bertrand oligopoly
Decreasing returns
Mixed equilibria

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10.1016/S0165-1765(01)00564-X

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title = "Mixed Bertrand equilibria under decreasing returns to scale: An embarrassment of riches",

abstract = "We show that under decreasing returns to scale there are continua of non-zero profit mixed Bertrand equilibria where firms randomise between any finite number of pure equilibrium prices. Unlike the previous literature we do not assume infinite monopoly profit.",

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AB - We show that under decreasing returns to scale there are continua of non-zero profit mixed Bertrand equilibria where firms randomise between any finite number of pure equilibrium prices. Unlike the previous literature we do not assume infinite monopoly profit.

KW - Bertrand oligopoly

KW - Decreasing returns

KW - Mixed equilibria

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JO - Economics Letters

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ER -

Mixed Bertrand equilibria under decreasing returns to scale: An embarrassment of riches

Abstract

Keywords

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