On the Existence of an Equilibrium in Bertrand Pricing Games with Discrete Choice Models of Demand

نویسنده

  • Denrick G. Bayot
چکیده

This note examines equilibrium existence of Nash-Bertrand pricing games with discrete-choice models of demand. We provide a sufficient and necessary condition on the distribution of firm idiosyncratic shocks for best response correspondences to exhibit monotonicity. We then use Tarski’s fixed point result to show that the condition we provide generates a unique pure-strategy equilibrium. Moreover, we conclude that any equilibrium existence results that employ Tarski’s fixed point argument must satisfy these error-term conditions.

برای دانلود رایگان متن کامل این مقاله و بیش از 32 میلیون مقاله دیگر ابتدا ثبت نام کنید

ثبت نام

اگر عضو سایت هستید لطفا وارد حساب کاربری خود شوید

منابع مشابه

A game Theoretic Approach to Pricing, Advertising and Collection Decisions adjustment in a closed-loop supply chain

This paper considers advertising, collection and pricing decisions simultaneously for a closed-loop supplychain(CLSC) with one manufacturer(he) and two retailers(she). A multiplicatively separable new demand function is proposed which influenced by pricing and advertising. In this paper, three well-known scenarios in the game theory including the Nash, Stackelberg and Cooperative games are expl...

متن کامل

Nash Equilibrium Strategy for Bi-matrix Games with L-R Fuzzy Payoffs

In this paper, bi-matrix games are investigated based on L-R fuzzy variables. Also, based on the fuzzy max order several models in non-symmetrical L-R fuzzy environment is constructed and the existence condition of Nash equilibrium strategies of the fuzzy bi-matrix games is proposed. At last, based on the Nash equilibrium of crisp parametric bi-matrix games, we obtain the Pareto and weak Pareto...

متن کامل

Pricing in a two-echelon supply chain with different market powers: game theory approaches

In this research, the optimal pricing decisions for two complementary products in a two-echelon supply chain under two scenarios are studied. The proposed supply chain in each echelon includes one retailer and two manufacturers and the same complementary products are produced. In the first scenario, we assume the unit manufacturing costs of the complementary products in each echelon are the sam...

متن کامل

Bertrand-nash Equilibrium in the Retail Duopoly Model under Asymmetric Costs

In this paper, the Bertrand's price competition in the retail duopoly with asymmetric costs is analyzed. Retailers sell substitute products in the framework of the classical economic order quantity (EOQ) model with linear demand function. The market potential and competitor price are considered to be the bifurcation parameters of retailers. Levels of the barriers to market penetration depending...

متن کامل

Pricing and Advertising Decisions in a Three-level Supply Chain with Nash, Stackelberg and Cooperative Games

Pricing and advertising are two important marketing strategies in the supply chain management which lead to customer demand’s increase and therefore higher profit for members of supply chains. This paper considers advertising, and pricing decisions simultaneously for a three-level supply chain with one supplier, one manufacturer and one retailer. The amount of market demand is influenced ...

متن کامل

ذخیره در منابع من


  با ذخیره ی این منبع در منابع من، دسترسی به آن را برای استفاده های بعدی آسان تر کنید

عنوان ژورنال:

دوره   شماره 

صفحات  -

تاریخ انتشار 2013