Bertrand equilibrium with subadditive costs

C-Tier
Journal: Economics Letters
Year: 2011
Volume: 112
Issue: 2
Pages: 202-204

Score contribution per author:

1.009 = (α=2.02 / 1 authors) × 0.5x C-tier

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

Abstract

We show here, in contrast to recent results, that if firms have different cost functions (that are strictly subadditive), such that the 'monopoly breakeven prices' are different, then in a homogeneous product duopoly there is always a Bertrand equilibrium (either in pure strategies or in mixed strategies).

Technical Details

RePEc Handle
repec:eee:ecolet:v:112:y:2011:i:2:p:202-204
Journal Field
General
Author Count
1
Added to Database
2026-01-25