Optimal Penal Codes in Price-setting Supergames with Capacity Constraints

S-Tier
Journal: Review of Economic Studies
Year: 1987
Volume: 54
Issue: 3
Pages: 385-397

Score contribution per author:

8.043 = (α=2.01 / 1 authors) × 4.0x S-tier

α: calibrated so average coauthorship-adjusted count equals average raw count

Abstract

Optimal penal codes are constructed for a class of infinitely repeated games with discounting. These games can be interpreted as Bertrand oligopoly games with capacity constraints. No particular rationing rule is adopted; weak restrictions are imposed on the firms' sales functions instead. Models adopting the commonly used rationing rules are special cases of the general framework studied here. It is found that firms can be driven to their security levels by credible punishments.

Technical Details

RePEc Handle
repec:oup:restud:v:54:y:1987:i:3:p:385-397.
Journal Field
General
Author Count
1
Added to Database
2026-01-25