Number of Sellers and Quantal Response Equilibrium Prices Ralph - C . Bayer and Hang Wu
نویسنده
چکیده
This paper studies the effects of increasing the number of sellers on Quantal Response Equilibrium (QRE) prices in homogeneous product Bertrand oligopoly markets. We show that the two most commonly used choice functions (power and logistic) lead to qualitatively different comparative-static predictions with respect to the relationship between number of firms and prices. JEL Numbers: C73, D83, L13
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