1972/02/01 by Richard Levitan, Richard E. Levitan, Martin Shubik +1 · 1 citation
Decision Sciences · Economics, Econometrics and Finance · Business, Management and Accounting · #Auction Theory and Applications #Merger and Competition Analysis #Consumer Market Behavior and Pricing
paper · doi:10.2307/2525908
Abstract : The paper examines an extremely simple model of a duopoly situation in which the two firms compete with price as the strategic variable and in which the firms are limited by capacity constraints. Some of the important developments of duopoly theory concerned with the existence of equilibrium is reviewed. Such a market, as Edgeworth showed, does not in general have an equilibrium. It is shown that the model described in the report has a rather simply described equilibrium in mixed strategies.