Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/84463
Authors: 
Coloma, Germán
Year of Publication: 
2008
Series/Report no.: 
Serie Documentos de Trabajo, Universidad del CEMA: Área: economía 369
Abstract: 
In this paper we show that a homogeneous-product market with multiple Bertrand equilibria becomes a market with a single Bertrand equilibrium when we introduce a small degree of product differentiation. When differentiation tends to zero, that Bertrand equilibrium converges to the unique price-taking equilibrium of the homogeneous-product market, which is in turn one of the multiple Bertrand equilibria for that market.
Subjects: 
Bertrand equilibrium
price-taking equilibrium
product differentiation
JEL: 
D43
L13
Document Type: 
Working Paper

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