| Author: | Tauman, Y. Urbano, A. Watanabe, J. |
| Title: | A model of multiproduct price competition |
| Journal: | Journal of Economic Theory
1997 : DEC, VOL. 77:2, p. 377-401 |
| Index terms: | PRICES COMPETITION OLIGOPOLY |
| Language: | eng |
| Abstract: | The authors provide a simple model of price competition in a multiproduct oligopoly market. The products are of general nature. The authors find that a pure strategy equilibrium exists and every equilibrium consumption maximizes the total social surplus. Consumers are characterized by a set function which determines their willingness to pay for every subset of products. If this function is convex, the set of equilibrium prices coincides with the core of a cooperative game generated by this set function and the firms extract total industry surplus. |
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