Randomized Strategy Equilibrium and Bertrand Equilibrium in the Action Commitment Game with a Small Cost of Leading
نویسندگان
چکیده
We introduce a small cost of leading in the two-player action commitment game formulated by Hamilton and Slutsky (1990). We investigate a price competition model and find that any randomized strategy equilibria converge to the Bertrand equilibrium. JEL classification numbers: L13, C72
منابع مشابه
Randomized Strategy Equilibrium and Simultaneous-Move Outcome in the Action Commitment Game with a Small Cost of Leading
We introduce a small cost of leading (small gain from waiting) in the two-player action commitment game formulated by Hamilton and Slutsky (1990). We investigate a quantity competition model with linear demand and constant marginal costs. We find that there exists a unique randomized strategy equilibrium as long as the leading cost is positive and not too large. The randomized strategy equilibr...
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