On the Existence of Bertrand-Nash Equilibrium Prices Under Logit Demand

Details On the Existence of Bertrand-Nash Equilibrium Prices Under Logit Demand On the Existence of Bertrand-Nash Equilibrium Prices Under Logit Demand

2010-12-28

arxiv.org/abs/1012.5832v2

Economy

Quantitative Finance

General Finance

39 Pages

Scientific paper

This article presents a proof of the existence of Bertrand-Nash equilibrium prices with multi-product firms and under the Logit model of demand that does not rely on restrictive assumptions on product characteristics, firm homogeneity or symmetry, product costs, or linearity of the utility function. The proof is based on conditions for the indirect utility function, fixed-point equations derived from the first-order conditions, and a direct analysis of the second-order conditions resulting in the uniqueness of profit-maximizing prices. Several subsequent results also demonstrate that price equilibrium under the Logit model of demand cannot adequately describe multi-product pricing.

Affiliated with

Also associated with

No associations

Rating

On the Existence of Bertrand-Nash Equilibrium Prices Under Logit Demand does not yet have a rating. At this time, there are no reviews or comments for this scientific paper.

If you have personal experience with On the Existence of Bertrand-Nash Equilibrium Prices Under Logit Demand, we encourage you to share that experience with our LandOfFree.com community. Your opinion is very important and On the Existence of Bertrand-Nash Equilibrium Prices Under Logit Demand will most certainly appreciate the feedback.

Rate now

Comments { 0 }

Profile ID: LFWR-SCP-O-609996