Citation
Mr. Baye et J. Morgan, A folk theorem for one-shot Bertrand games, ECON LETT, 65(1), 1999, pp. 59-65
Citations number
5
Categorie Soggetti
Economics
Journal title
ECONOMICS LETTERS
ISSN journal
01651765
→ ACNP
Volume
65
Issue
1
Year of publication
1999
Pages
59 - 65
Database
ISI
SICI code
0165-1765(199910)65:1<59:AFTFOB>2.0.ZU;2-7
Abstract
We show that bounded monopoly profits are essential for the uniqueness of t
he Bertrand paradox (zero profit) outcome. Otherwise, a folk theorem obtain
s for one-shot homogeneous product Bertrand games: any positive (but finite
) payoff vector can be achieved in a symmetric mixed-strategy Nash equilibr
ium. (C) 1999 Elsevier Science S.A. All rights reserved.