PRICE VARIATION DUOPOLY WITH DIFFERENTIATED PRODUCTS AND RANDOM DEMAND,

Abstract

The paper shows that under the appropriate conditions the introduction of a random component to demand in a duopolistic (or more generally oligopolistic) market has the competitive effect of increasing stability in the sense that the market without a random component may have no noncooperative equilibrium point (in pure strategies) whereas the market with a random component has a noncooperative equilibrium point.

Document Details

Document Type
Technical Report
Publication Date
May 02, 1969
Accession Number
AD0688449

Entities

People

  • Martin Shubik
  • Richard Levitan

Organizations

  • Yale University

Tags

Fields of Study

  • Economics

Readers

  • Approximation Theory.
  • Economics
  • Game Theory.