Questions tagged [oligopoly]

Questions about markets where the number of sellers is finite and larger than one.

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8
votes
4answers
15k views

Nash equilibrium of a Bertrand game with different marginal costs

Consider the following game of Bertrand (price competition): There are two players, $1$ and $2$. Each has a publicly known marginal cost, $c_i$. A strategy is a price, $p_i\in\mathbb{R}$. Player $i$'...
6
votes
0answers
373 views

Dynamic Bertrand competition when players take turns

Consider the following game: There are two players, $i\in\{1,2\}$ Time is discrete and runs to infinity during periods $t=\{1,2,\ldots\}$ At eat point in time, players have a price $p_i(t)\in\mathbb{...
-1
votes
1answer
368 views

Question on oligopoly.

Consider an oligopoly between two identical firms producing a homogenous good with constant marginal cost where firms face linear market demand. $B_i(q_j)$ denotes firm i’s best response given the ...