Resolving the friction between Turnbull's (1983) and Klemperer-Meyer's (1989) Nash equilibria in affine supply functions

Alexander Zimper ()
Additional contact information
Alexander Zimper: Zimper

No 258, ERSA Working Paper Series from Economic Research Southern Africa

Abstract: Turnbull (1983) describes unique symmetric Nash equilibria for supply function competition under demand uncertainty which consist of affine strategies that are nonlinear. For the same economy Klemperer and Meyer (1989) derive unique Nash equilibria that are linear. This note shows that the friction between both results comes from a mathematical error in Turnbull (1983). Correcting this error establishes the same linear Nash equilibria for both models.

Keywords: Supply function competition; Demand uncertainty; Uniqueness of Nash equilibria (search for similar items in EconPapers)
JEL-codes: C72 D43 (search for similar items in EconPapers)
Date: 2026-02
References: Add references at CitEc
Citations:

Published in ERSA Working Paper Series, February 2026

Downloads: (external link)
https://ersawps.org/index.php/working-paper-series/article/view/258/184 First version, 2026 (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:rza:ersawp:258

Access Statistics for this paper

More papers in ERSA Working Paper Series from Economic Research Southern Africa
Bibliographic data for series maintained by Maggi Sigg ().