Quality Uncertainty as Resolution of the Bertrand Paradox

نویسندگان

  • Attila Tasnadi
  • Trenton Smith
  • Andrew Hanks
  • Attila Tasnádi
  • Trenton G. Smith
  • Andrew S. Hanks
چکیده

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.

برای دانلود 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

Bertrand’s Paradox Revisited: More Lessons about that Ambiguous Word, Random

The Bertrand paradox question is: “Consider a unit-radius circle for which the length of a side of an inscribed equilateral triangle equals 3 . Determine the probability that the length of a ‘random’ chord of a unit-radius circle has length greater than 3 .” Bertrand derived three different ‘correct’ answers, the correctness depending on interpretation of the word, random. Here we employ geomet...

متن کامل

Price competition with population uncertainty

The Bertrand paradox holds that price competition among at least two firms eliminates all profits in equilibrium, when firms have identical constant marginal costs. This assumes that the number of competitors is common knowledge among firms. If firms are uncertain about the number of their competitors, there is no pure strategy equilibrium. But in mixed strategies an equilibrium exists. In this...

متن کامل

Effects of Digital Elevation Models (DEM) Spatial Resolution on Hydrological Simulation

Digital Elevation Model is one of the most important data for watershed modeling whit hydrological models that it has a significant impact on hydrological processes simulation. Several studies by the Soil and Water Assessment Tool (SWAT) as useful Tool have indicated that the simulation results of this model is very sensitive to the quality of topographic data. The aim of this study is evaluati...

متن کامل

Consumer Mistakes in Bertrand Games

The identical agent, identical good Bertrand game is associated with prices at marginal cost the Bertrand Paradox. If consumers make occasional mistakes I show that the standard Bertrand game gives rise to positive profits and prices above marginal cost. Some firms charge low prices to capture the bulk of the sales while others charge high prices selling to mistaken consumers. Furthermore, with...

متن کامل

Special Bertrand Curves in semi-Euclidean space E4^2 and their Characterizations

In [14] Matsuda and Yorozu.explained that there is no special Bertrand curves in Eⁿ and they new kind of Bertrand curves called (1,3)-type Bertrand curves Euclidean space. In this paper , by using the similar methods given by Matsuda and Yorozu [14], we obtain that bitorsion of the quaternionic curve is not equal to zero in semi-Euclidean space E4^2. Obtain (N,B2) type quaternionic Bertrand cur...

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

برای دانلود 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

عنوان ژورنال:

دوره   شماره 

صفحات  -

تاریخ انتشار 2010