Bertrand price competition with differentiated commodities
type: Item
instance of: scholarly article
title: Bertrand price competition with differentiated commodities
zbMATH Open document ID: 0632.90014
DOI: 10.1016/0022-0531(87)90022-6
author: Leo K. Simon
published in: Journal of Economic Theory
publication date: 1987-01-01T00:00:00Z
review text: We develop a general equilibrium differential commodity version of Bertrand price competition. We study two, related market games in which buyers as well as sellers announce both quantities and prices. In the first game, buyers' strategies are artificially restricted. The Nash allocations of this game will be nearly competitive, provided that the commodities supplied by sellers are sufficiently similar. In the second game, the restriction on buyers' strategies is relaxed and a stronger solution criterion, called local perfection, is invoked. The locally perfect equilibria of the unrestricted game coincide with the Nash equilibria of the restricted game.
Mathematics Subject Classification ID: 91B50
Mathematics Subject Classification ID: 91A40
Mathematics Subject Classification ID: 91B24
zbMATH DE Number: 4029227
zbMATH Keywords: differential commodity version
zbMATH Keywords: Bertrand price competition
zbMATH Keywords: related market games
zbMATH Keywords: Nash allocations
zbMATH Keywords: local perfection
MaRDI profile type: Publication
full work available at URL: 0022-0531(87)90022-6
OpenAlex ID: W2019631764
cites work: Consumer Search and Alternative Market Equilibria
cites work: Q5563225
cites work: Price-Quantity Strategic Market Games
cites work: Nash Equilibrium and the Industrial Organization of Markets with Large Fixed Costs
cites work: Q4121644
cites work: A model of equilibrium with differentiated commodities
cites work: Refinements of the Nash equilibrium concept
cites work: Bargains and Ripoffs: A Model of Monopolistically Competitive Price Dispersion
cites work: Bertrand, the Cournot Paradigm and the Theory of Perfect Competition
cites work: Local perfection
cites work: Equilibrium Comparison Shopping
cites work: On the Foundations of the Theory of Monopolistic Competition
description: scientific article; zbMATH DE number 4029227