Price symmetry in a duopoly with congestion
Ori Haimanko () and
Richard Steinberg
No 2000056, LIDAM Discussion Papers CORE from Université catholique de Louvain, Center for Operations Research and Econometrics (CORE)
Abstract:
We show that in a duopoly operating in a congested market, with a general congestion function and an arbitrary distribution of consumer disutility for congestion, there cannot exist an asymmetric Nash equilibrium. We also show that whenever an equilibrium does exist it is unique. Closed form expressions for the symmetric equilibrium prices and profits are provided.
Keywords: duopolistic pricing; congestion; symmetric equilibria; covered market. (search for similar items in EconPapers)
JEL-codes: C72 D43 (search for similar items in EconPapers)
Date: 2000-12
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Citations: View citations in EconPapers (1)
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Persistent link: https://EconPapers.repec.org/RePEc:cor:louvco:2000056
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