Bertrand games and sharing rules
We consider asymmetric Bertrand games with arbitrary payoffs at ties or sharing rules, and identify sufficient conditions for the zero-profit outcome and the existence of Nash equilibria. Subject to some technical conditions on non-tied payoffs the following hold. If the sharing rule is strictly tie...
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Veröffentlicht in: | Economic theory 2007-06, Vol.31 (3), p.573-585 |
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Format: | Artikel |
Sprache: | eng |
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Zusammenfassung: | We consider asymmetric Bertrand games with arbitrary payoffs at ties or sharing rules, and identify sufficient conditions for the zero-profit outcome and the existence of Nash equilibria. Subject to some technical conditions on non-tied payoffs the following hold. If the sharing rule is strictly tie-decreasing all players but one receive zero equilibrium payoffs, while everybody does so if non-tied payoffs are symmetric. Mixed (pure) strategy Nash equilibria exist if the sharing rule is (norm) tie-decreasing and coalition-monotone. |
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ISSN: | 0938-2259 1432-0479 |
DOI: | 10.1007/s00199-006-0112-8 |