This note provides an alternative construction to Blume (2003) of equilibria in the standard model of Bertrand competition with homogeneous products and different marginal costs that achieve the conventional outcome. In addition, I provide a means to select one of these equilibria.

I show that marginal cost asymmetry has important implications for search models. In several widely used search models with mixed strategy equilibria, excluding some special cases, firms with different marginal costs cannot randomize prices in the same interval. So, even a small asymmetry in...

This paper (a) characterizes the unique Nash equilibrium of the unidirectional Hotelling–Downs game in which firms maximize their market shares, for any distribution of the consumers, and (b) analyzes equilibrium behavior in the variation of the game in which each firm aims to secure a larger...