On price equilibrium with multi-product firms
2004-12-20
Research Paper
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In this paper we provide a result that shows existence and uniqueness of Nash equilibrium in cases in which existent methods are problematic to apply. We employ this result to the model with simple logit demand, and show existence and uniqueness of price equilibrium when firms produce multiple non-symmetric products. Our proof for this case is based only on the intuitive assumption that market shares are decreasing in own price.
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- equilibrium
- price equilibrium
- condition
- price
- uniqueness
- result
- product
- model
- pro...t
- function
- existence
- proposition
- proof
- nash equilibrium
- rst order conditions
- point
- pj cj
- logit
- lemma
- j 2 gf
