Bertrand-Edgeworth competition, demand uncertainty, and asymmetric outcomes
成果类型：
Article
署名作者：
Reynolds, SS; Wilson, BJ
署名单位：
University of Arizona; University of Arizona
刊物名称：
JOURNAL OF ECONOMIC THEORY
ISSN/ISSBN：
0022-0531
DOI：
10.1006/jeth.1999.2624
发表日期：
2000
页码：
122-141
关键词：
摘要：
We analyze investment and pricing incentives in a symmetric Bertrand-Edgeworth framework with uncertain demand. Firms choose production capacities before observing demand. Prices are chosen Lifter demand is observed. if the extent of demand variation exceeds a threshold level then a symmetric equilibrium in pure strategies for capacities does not exist. A smaller firm has no incentive (ex ante) to expand its capacity because capacity expansion would reduce its expected revenue in the event that demand is lower than expected, output prices are predicted to have positive variance when demand is low and zero variance when demand is high. Journal of Economic Literature Classification Numbers: D43, L13. (C) 2000 Academic Press.