Bertrand vs. Cournot equilibrium with risk averse firms and cost uncertainty
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.
scientific article; zbMATH DE number 1850411