A Note on Undominated Bertrand Equilibria

Abstract: This note shows that the conventional outcome associated with Bertrand competition with homogenous products and different marginal costs is obtained in every Nash equilibrium in which firms use undominated strategies. This strengthens an existence result due to Blume (2003).
Document Control Number(s): CFP 1967
Author(s): Navin Kartik
Publication Link: https://doi.org/10.1016/j.econlet.2011.01.013
Page Count: 2
Publication Date: May 2011