Research output

On pure-strategy Nash equilibria in price-quantity games

Research output: Working paperProfessional

Associated researcher

Associated organisations

Abstract

This paper examines the existence and characteristics of pure-strategy Nash equilibria in oligopoly models in which firms set both prices and quantities. Existence is proved for a broad and natural class of price-quantity games. With differentiated products, the equilibrium outcome is similar to that of a price-only model. With undifferentiated products and limited spillover demand, there are rationing equilibria in which combined production falls short of market demand. Moreover, there might again be an equilibrium reflecting the outcome of a price game. Competition in price and quantity may thus yield Bertrand outcomes under a variety of market conditions.

Documents

  • Full Text

    Final published version, 497 KB, PDF-document

View graph of relations

Details

Original languageEnglish
Place of PublicationMaastricht
PublisherGSBE
Number of pages23
Publication statusPublished - 1 Jan 2015

Publication series

NameGSBE Research Memoranda
PublisherGSBE
No.018