Quality Uncertainty as Resolution of the Bertrand Paradox

We show that in a homogeneous-good duopoly market with quality uncertainty and constant unit costs, the Bertrand paradox (i.e., marginal cost pricing) can be avoided.

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Year of publication:	2010-01
Authors:	Tasnadi, Attila ; Smith, Trenton ; Hanks, Andrew
Institutions:	School of Economic Sciences, Washington State University
Subject:	oligopoly \| endogenous preferences \| threshold utility

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Extent:	application/pdf
Series:	Working Papers.
Type of publication:	Book / Working Paper
Language:	English
Notes:	Number 2010-1 6 pages
Classification:	L13 - Oligopoly and Other Imperfect Markets ; D81 - Criteria for Decision-Making under Risk and Uncertainty
Source:	RePEc - Research Papers in Economics

Persistent link: https://www.econbiz.de/10008583347