Author:

Keywords:

Social Sciences, Economics, Social Sciences, Mathematical Methods, Business & Economics, Mathematical Methods In Social Sciences, Bertrand competition, Asymmetric costs, Myopic stable set, 14 Economics, 17 Psychology and Cognitive Sciences, 22 Philosophy and Religious Studies, Economic Theory, 38 Economics, 50 Philosophy and religious studies, 52 Psychology

Abstract:

© 2019, The Author(s). We consider a Bertrand duopoly with homogeneous goods and we allow for asymmetric marginal costs. We derive the Myopic Stable Set in pure strategies as introduced by Demuynck et al. (Econometrica 87:111–138, 2019). In contrast to the set of Nash equilibria, the unique Myopic Stable Set can be easily characterized in closed form and it provides an intuitive set-valued prediction.