Capacity constrained duopolies, uncertain demand and non-existence of pure strategy equilibria

Hviid, Morten (1991) Capacity constrained duopolies, uncertain demand and non-existence of pure strategy equilibria. European Journal of Political Economy, 7 (2). pp. 183-190. ISSN 1873-5703

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Abstract

The paper analyses the effect of uncertainty in duopoly models where capacity constrained firms compete in prices. We show that no pure strategy Nash equilibrium exist in this game. If capacity is endogenous and chosen before prices, this result holds regardless of whether the realisation of demand is known to firms before or after they choose their prices.

Item Type: Article
Faculty \ School: Faculty of Social Sciences > School of Law
UEA Research Groups: Faculty of Social Sciences > Research Groups > Competition, Markets and Regulation
Faculty of Medicine and Health Sciences > Research Centres > Business and Local Government Data Research Centre
Faculty of Social Sciences > Research Groups > Media, Information Technology and Intellectual Property Law
Faculty of Social Sciences > Research Centres > Centre for Competition Policy
Depositing User: Julie Frith
Date Deposited: 16 Nov 2010 09:34
Last Modified: 22 Apr 2023 23:59
URI: https://ueaeprints.uea.ac.uk/id/eprint/10800
DOI: 10.1016/0176-2680(91)90005-N

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