Correlated equilibria in homogenous good Bertrand competition

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Correlated equilibria in homogenous good Bertrand competition. / Jann, Ole; Schottmüller, Christoph.

I: Journal of Mathematical Economics, Bind 57, 03.2015, s. 31-37.

Publikation: Bidrag til tidsskrift › Tidsskriftartikel › Forskning › fagfællebedømt

Harvard

Jann, O & Schottmüller, C 2015, 'Correlated equilibria in homogenous good Bertrand competition', Journal of Mathematical Economics, bind 57, s. 31-37. https://doi.org/10.1016/j.jmateco.2015.01.005

APA

Jann, O., & Schottmüller, C. (2015). Correlated equilibria in homogenous good Bertrand competition. Journal of Mathematical Economics, 57, 31-37. https://doi.org/10.1016/j.jmateco.2015.01.005

Vancouver

Jann O, Schottmüller C. Correlated equilibria in homogenous good Bertrand competition. Journal of Mathematical Economics. 2015 mar.;57:31-37. https://doi.org/10.1016/j.jmateco.2015.01.005

Author

Jann, Ole ; Schottmüller, Christoph. / Correlated equilibria in homogenous good Bertrand competition. I: Journal of Mathematical Economics. 2015 ; Bind 57. s. 31-37.

Bibtex

@article{078b5151fcb1457aaade0384c7a2e841,
title = "Correlated equilibria in homogenous good Bertrand competition",
abstract = "We show that there is a unique correlated equilibrium, identical to the unique Nash equilibrium, in the classic Bertrand oligopoly model with homogenous goods and identical marginal costs. This provides a theoretical underpinning for the so-called {"}Bertrand paradox'' as well as its most general formulation to date. Our proof generalizes to asymmetric marginal costs and arbitrarily many players in the following way: The market price cannot be higher than the second lowest marginal cost in any correlated equilibrium.",
keywords = "Faculty of Social Sciences, Bertrand paradox, correlated equilibrium, price competition",
author = "Ole Jann and Christoph Schottm{\"u}ller",
year = "2015",
month = mar,
doi = "10.1016/j.jmateco.2015.01.005",
language = "English",
volume = "57",
pages = "31--37",
journal = "Journal of Mathematical Economics",
issn = "0304-4068",
publisher = "Elsevier",

}

RIS

TY - JOUR

T1 - Correlated equilibria in homogenous good Bertrand competition

AU - Jann, Ole

AU - Schottmüller, Christoph

PY - 2015/3

Y1 - 2015/3

N2 - We show that there is a unique correlated equilibrium, identical to the unique Nash equilibrium, in the classic Bertrand oligopoly model with homogenous goods and identical marginal costs. This provides a theoretical underpinning for the so-called "Bertrand paradox'' as well as its most general formulation to date. Our proof generalizes to asymmetric marginal costs and arbitrarily many players in the following way: The market price cannot be higher than the second lowest marginal cost in any correlated equilibrium.

AB - We show that there is a unique correlated equilibrium, identical to the unique Nash equilibrium, in the classic Bertrand oligopoly model with homogenous goods and identical marginal costs. This provides a theoretical underpinning for the so-called "Bertrand paradox'' as well as its most general formulation to date. Our proof generalizes to asymmetric marginal costs and arbitrarily many players in the following way: The market price cannot be higher than the second lowest marginal cost in any correlated equilibrium.

KW - Faculty of Social Sciences

KW - Bertrand paradox

KW - correlated equilibrium

KW - price competition

U2 - 10.1016/j.jmateco.2015.01.005

DO - 10.1016/j.jmateco.2015.01.005

M3 - Journal article

VL - 57

SP - 31

EP - 37

JO - Journal of Mathematical Economics

JF - Journal of Mathematical Economics

SN - 0304-4068

ER -

ID: 130802339