Approximate Bertrand Equilibria in a Replicated Industry

S-Tier
Journal: Review of Economic Studies
Year: 1987
Volume: 54
Issue: 1
Pages: 47-62

Score contribution per author:

8.073 = (α=2.02 / 1 authors) × 4.0x S-tier

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

Abstract

This paper considers the existence and properties of approximate Bertrand equilibria in a replicated industry. Price setting firms produce a homogeneous product with weakly convex costs. The main results are that: (a) Given ɛ > 0, an ɛ-equilibrium exists if the industry is large enough; (b) If the ɛ is small enough, and the industry large enough, any ɛ-equilibrium is approximately competitive. These results depend on how contingent demand is specified.

Technical Details

RePEc Handle
repec:oup:restud:v:54:y:1987:i:1:p:47-62
Journal Field
General
Author Count
1
Added to Database
2026-01-25