Version 1
: Received: 17 October 2023 / Approved: 18 October 2023 / Online: 19 October 2023 (02:43:16 CEST)
How to cite:
Filatov, A. Price oligopoly with differentiated product and dependence of total demand on the bottom price. Preprints2023, 2023101153. https://doi.org/10.20944/preprints202310.1153.v1
Filatov, A. Price oligopoly with differentiated product and dependence of total demand on the bottom price. Preprints 2023, 2023101153. https://doi.org/10.20944/preprints202310.1153.v1
Filatov, A. Price oligopoly with differentiated product and dependence of total demand on the bottom price. Preprints2023, 2023101153. https://doi.org/10.20944/preprints202310.1153.v1
APA Style
Filatov, A. (2023). Price oligopoly with differentiated product and dependence of total demand on the bottom price. Preprints. https://doi.org/10.20944/preprints202310.1153.v1
Chicago/Turabian Style
Filatov, A. 2023 "Price oligopoly with differentiated product and dependence of total demand on the bottom price" Preprints. https://doi.org/10.20944/preprints202310.1153.v1
Abstract
The paper proposes a game theory model of price oligopoly with a heterogeneous product, where total demand depends linearly on the minimum market price. This model develops the Bertrand oligopoly for the case of imperfect price elasticity of demand. The most interesting result is an asymmetric Nash equilibrium with different prices and sales in the situation of symmetric oligopolists. The asymmetry is explained by the fact that a decrease in the minimum market price leads not only to a reallocation of consumers among firms, but also to an increase in total demand. Modifications of a two-stage game with a leader and followers and the price discrimination model are also considered. Microeconomic substantiation of the model is given on the basis of the spatial differentiation approach.
Copyright:
This is an open access article distributed under the Creative Commons Attribution License which permits unrestricted use, distribution, and reproduction in any medium, provided the original work is properly cited.
