A Pure Strategy Nash Equilibrium Bertrand Game with Strictly Positive Profits

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DOI: 10.4236/jss.2016.43009    3,241 Downloads   4,584 Views  Citations
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ABSTRACT

This paper explores the existence of pure strategy Nash equilibrium of a Bertrand game with strictly positive profits. We show that when fixed cost is small enough, there always exists pure strategy Nash equilibrium with strictly positive profits if firms have quadratic cost functions and linear demand curve.

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Pu, Y. and Zhu, L. (2016) A Pure Strategy Nash Equilibrium Bertrand Game with Strictly Positive Profits. Open Journal of Social Sciences, 4, 54-56. doi: 10.4236/jss.2016.43009.

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