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Advisor(s)
Abstract(s)
We study a Bertrand oligopoly model with incomplete information about rivals' costs, where the uncertainty is
given by a uniform distribution. We compute the Bayesian-Nash equilibrium of this game, the ex-ante expected profit and the
ex-post profit of each firm. We see that, even though only one firm produces in equilibrium, all firms have a positive ex-ante expected profit.
Description
Keywords
Industrial organization Bertrand oligopoly Uncertainty Bayesian-Nash equilibrium
Citation
Publisher
AIP Publishing