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- W2058546564 abstract "This paper investigates mixed strategy equilibria in a capacity-constrained price competition among three firms. It is shown that the equilibria in an asymmetric oligopoly are substantially different from those in a duopoly and symmetric oligopoly. In an asymmetric triopoly, it is possible that (i) a continuum of equilibria exits and that (ii) the lowest price of the smallest firm is higher than that of the others and the smallest firm earns more than the max-min profit in undominated strategies. In particular, the second finding sheds light on a new pricing incentive in Bertrand competitions. As an application, the equilibrium characterizations give rise to a new class of merger paradoxes." @default.
- W2058546564 created "2016-06-24" @default.
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- W2058546564 date "2008-01-01" @default.
- W2058546564 modified "2023-09-23" @default.
- W2058546564 title "Asymmetric Bertrand-Edgeworth Oligopoly and Mergers" @default.
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- W2058546564 doi "https://doi.org/10.2139/ssrn.1115959" @default.
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