Mixed Bertrand equilibria under decreasing returns to scale: an embarrassment of riches

We show that under decreasing returns to scale there are continua of non-zero profit mixed Bertrand equilibria where firms randomise between any finite number of pure equilibrium prices. Unlike the previous literature we do not assume infinite monopoly profits.

Bibliographische Detailangaben

Veröffentlicht in:	Economics letters 2002-02, Vol.74 (3), p.359-362
1. Verfasser:	Hoernig, Steffen H.
Format:	Artikel
Sprache:	eng
Schlagworte:	Bertrand oligopoly Competition Decreasing returns Economic equilibrium Economics Mixed equilibria Oligopoly Returns to scale
Online-Zugang:	Volltext
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