# Tag Info

Accepted

### Nash equilibrium of a Bertrand game with different marginal costs

Yes, there is no equilibrium in pure strategies. For any price charged by firm 2 above $c_1$, firm one could only best respond by charging the largest price that is strictly smaller. which is ...
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### Books friendly to self-studying Industrial Organization

While taking Industrial Organization I remember working with: Strategies and games: theory and practice by Dutta Introduction to industrial organization by Cabral Industrial organization: theory and ...
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### Math in Melitz and Ottaviano (2008)

hint: sum equation (2) for all i and use the definition of $Q^c$, we get an expression for $Q^c$. then, substitute this expression into (2) and solve for $q^c$.
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• 5,291

### Books friendly to self-studying Industrial Organization

I would recommend the The theory of Industrial Organization and the Game Theory from Jean Tirole
• 57.4k

### Quasi concavity of utility function

Your conjecture seems to be contradicted, at least for small values of $\sigma$. You can draw the function with the following R-code: ...
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### What is the latest thinking on the economic calculation problem?

Depends what exactly is the authors definition of “radical markets”. A predominant consensus in the economic field is that a mixed economy which relies predominantly on market form of organization but ...
• 57.4k
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### Prices set by firms are the same in a Salop circle. But why?

tl;dr: Prices are identical because firms are identical. Profits of firm $i$ depend on own price $p_i$ and on neighbors' prices $p_{i-1}$ and $p_{i+1}$. Prices are set simultaneously, therefore ...
• 7,099
Accepted

### Two part tariff-income effects

In the typical textbook treatment of the two-part tariff model, income effect is ignored/assumed to be negligible. Goldman, Leland, and Sibley (1984) provided detailed comparison of optimal nonlinear ...
• 15.6k
Accepted

### Profit-maximization for a monopoly

A monopolist maximizes profit. For me, it is usually easier to do this in the quantity space. So you rearange the demand and maximize $$\max_{Q_p,Q_r} \quad P_p(Q_p)Q_p + P_r(Q_r)Q_r - TC(Q_p+Q_r)$$ ...
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### Long Run Equilibrium of Oligopolies

Taking the Cournot duopoly model as an example, the model has a solution in the sense that there exists a single price in the market, and at that price the two quantity-setting firms produce a given ...
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### Nash equilibrium of a Bertrand game with different marginal costs

I think standard in Bertrand competition with different constant marginal cost is another assumption in case of equal prices. Instead of sharing demand equally, you could assume that in case of equal ...
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### Block pricing for different products

I am not exactly sure what you mean by "block price" and I don't know the bucket buddy. However, I feel like you are talking about what microeconomists term bundling, the practice of selling two (or ...
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