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Undercut-Proof Equilibria with Multiple Firms

16 Pages Posted: 1 Dec 2013 Last revised: 27 Mar 2015

Peter B. Morgan

University at Buffalo

Oz Shy

Independent

Date Written: March 26, 2015

Abstract

This short article provides formulae for computing the undercut-proof equilibrium prices in a differentiated products industry with any finite number of firms. The formulae are very simple and can be easily implemented with a typical spreadsheet to solve for the unique equilibrium prices.

Keywords: Undercut-Proof Equilibrium, Differentiated Products, Multiple firms, Conjectural Variations

JEL Classification: L1, D43

Suggested Citation

Morgan, Peter B. and Shy, Oz, Undercut-Proof Equilibria with Multiple Firms (March 26, 2015). Available at SSRN: https://ssrn.com/abstract=2361678 or http://dx.doi.org/10.2139/ssrn.2361678

Peter B. Morgan

University at Buffalo ( email )

Fronczak Hall 415
Buffalo, NY 14260-1520
United States
716-645-8690 (Phone)
716-645-2127 (Fax)

HOME PAGE: http://www.acsu.buffalo.edu/~pbmorgan

Oz Shy (Contact Author)

Independent ( email )

No Address Available

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