Bertrand vs. Cournot equilibrium with risk averse firms and cost uncertainty
type: Item
instance of: scholarly article
title: Bertrand vs. Cournot equilibrium with risk averse firms and cost uncertainty
zbMATH Open document ID: 1020.91040
published in: Economic Theory
publication date: 2003-10-05T00:00:00Z
review text: The referred paper deals with two concepts of the price equilibrium in an oligopoly game with cost uncertainty and risk averse firms. The attention is focused on the comparison of asymptotic properties of the Bertrand and Cournot equilibria when the market is replicated. Exploring the conditions under which the supply curve is upward sloping, it is shown that the Cournot equilibrium price converges to the competitive price meanwhile the Bertrand equilibrium price converges to a value higher than the competitive equilibrium. The general model is completed by illustrative examples showing how to compute the considered limits.
reviewed by: Milan Mareš
Mathematics Subject Classification ID: 91B52
Mathematics Subject Classification ID: 91B26
zbMATH DE Number: 1850411
zbMATH Keywords: Market size
zbMATH Keywords: Bertrand competition
zbMATH Keywords: Cournot competition
zbMATH Keywords: competitive price
zbMATH Keywords: risk averse firms
zbMATH Keywords: cost uncertainty
author: Harrison H. C. Cheng
MaRDI profile type: Publication
full work available at URL: s001990100211
OpenAlex ID: W2009342202
DOI: 10.1007/S001990100211
description: scientific article; zbMATH DE number 1850411