William Novshek and Prabal Roy Chowdhury

"Bertrand equilibria with entry: limit results"
JEL codes: D43, D41, L13; L13
Keywords: Bertrand oligopoly, free entry, perfect competition, folk theorem

Abstract: We study the limiting behavior of Bertrand equilibria (where firms must supply the whole of the demand coming to them) for two different cases, first when entry is exogenous, and second when it is free. The limit equilibrium set is characterised for both cases for a large class of cost functions.