On pure-strategy Nash equilibria in price–quantity games

B-Tier
Journal: Journal of Mathematical Economics
Year: 2021
Volume: 96
Issue: C

Score contribution per author:

1.005 = (α=2.01 / 2 authors) × 1.0x B-tier

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

Abstract

This paper examines the existence and characteristics of pure-strategy Nash equilibria in oligopoly models in which firms simultaneously set prices and quantities. Existence of a pure-strategy equilibrium is proved for a class of price–quantity games. If the demand function is continuous, then the equilibrium outcome is similar to that of a price-only model. With discontinuous demand and limited spillover, there are rationing equilibria in which combined production falls short of market demand. Moreover, there might again be an equilibrium reflecting the outcome of a price game. Competition in price and quantity thus yields Bertrand outcomes under a variety of market conditions.

Technical Details

RePEc Handle
repec:eee:mateco:v:96:y:2021:i:c:s0304406821000392
Journal Field
Theory
Author Count
2
Added to Database
2026-01-24