Edgeworth cycles with partial price commitment

Nicolas de Roos

Economics Letters, 2017, vol. 150, issue C, 122-125

Abstract: The price commitment model of Maskin and Tirole (1988) provides an extensively cited foundation for Edgeworth cycles. We examine the viability of Edgeworth cycles when price commitment is partial in the sense that a subset of firms are committed to price in each period. If multiple firms are not committed in each period, then the existence of Edgeworth cycle equilibria requires a demanding convexity condition on the profit function.

Keywords: Edgeworth cycles; Price commitment (search for similar items in EconPapers)
JEL-codes: D43 (search for similar items in EconPapers)
Date: 2017
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Citations: View citations in EconPapers (2)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:ecolet:v:150:y:2017:i:c:p:122-125

DOI: 10.1016/j.econlet.2016.11.023

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