Jump to ContentJump to Main Navigation
Show Summary Details
More options …

The B.E. Journal of Theoretical Economics

Editor-in-Chief: Schipper, Burkhard

Ed. by Fong, Yuk-fai / Peeters, Ronald / Puzzello , Daniela / Rivas, Javier / Wenzelburger, Jan

2 Issues per year


IMPACT FACTOR 2016: 0.229
5-year IMPACT FACTOR: 0.271

CiteScore 2016: 0.30

SCImago Journal Rank (SJR) 2016: 0.398
Source Normalized Impact per Paper (SNIP) 2016: 0.232

Mathematical Citation Quotient (MCQ) 2016: 0.08

Online
ISSN
1935-1704
See all formats and pricing
More options …

Asymmetric Bertrand-Edgeworth Oligopoly and Mergers

Daisuke Hirata
Published Online: 2009-07-10 | DOI: https://doi.org/10.2202/1935-1704.1500

This paper investigates mixed strategy equilibria in a capacity-constrained price competition among three firms. It is shown that the equilibria in an asymmetric oligopoly are substantially different from those in a duopoly and symmetric oligopoly. In an asymmetric triopoly, it is possible that (i) a continuum of equilibria exists and that (ii) the lowest price of the smallest firm is higher than that of the others and the smallest firm earns more than the max-min profit in undominated strategies. In particular, the second finding sheds light on a new pricing incentive in Bertrand competitions. As an application, the equilibrium characterizations give rise to a new class of merger paradoxes.

Keywords: price competition; mixed strategy equilibrium; capacity constraint; homogeneous good; merger paradox

About the article

Published Online: 2009-07-10


Citation Information: The B.E. Journal of Theoretical Economics, ISSN (Online) 1935-1704, DOI: https://doi.org/10.2202/1935-1704.1500.

Export Citation

©2011 Walter de Gruyter GmbH & Co. KG, Berlin/Boston. Copyright Clearance Center

Citing Articles

Here you can find all Crossref-listed publications in which this article is cited. If you would like to receive automatic email messages as soon as this article is cited in other publications, simply activate the “Citation Alert” on the top of this page.

[1]
Luke Garrod and Matthew Olczak
The Journal of Industrial Economics, 2017, Volume 65, Number 3, Page 654
[2]
Massimo A. De Francesco and Neri Salvadori
Studies in Microeconomics, 2013, Volume 1, Number 2, Page 213
[3]
Attila Tasnádi
International Journal of Economic Theory, 2016, Volume 12, Number 4, Page 317
[4]
Zoltán Rácz and Attila Tasnádi
Journal of Economics, 2016
[5]
Banafsheh Behzad, Sheldon H. Jacobson, and Matthew J. Robbins
IIE Transactions, 2015, Volume 47, Number 11, Page 1252
[6]
Massimo A. De Francesco
Bulletin of Economic Research, 2014, Volume 66, Number 4, Page 406
[7]
Blake A. Allison and Jason J. Lepore
Journal of Economic Theory, 2014, Volume 152, Page 291

Comments (0)

Please log in or register to comment.
Log in