On price equilibrium with multi-product firms

In this paper we provide a result that shows existence and uniqueness of Nash equilibrium in cases in which existent methods are problematic to apply. We employ this result to the model with simple logit demand, and show existence and uniqueness of price equilibrium when firms produce multiple non-symmetric products. Our proof for this case is based only on the intuitive assumption that market shares are decreasing in own price.

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Year of publication:	2004-12-20
Authors:	SÃ¡ndor, Z.
Institutions:	Erasmus University Rotterdam, Econometric Institute
Subject:	Nash-Bertrand \| price competition \| product differentiation \| logit

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Extent:	application/pdf
Series:	Econometric Institute Report. - ISSN 1566-7294.
Type of publication:	Book / Working Paper
Notes:	The text is part of a series RePEc:dgr:eureir Number EI 2004-50
Source:	RePEc - Research Papers in Economics

Persistent link: https://www.econbiz.de/10004972190