2000
DOI: 10.1016/s0165-1765(00)00264-0
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A price-setting game with a nonatomic fringe

Abstract: This paper extends the Bertrand-Edgeworth price-setting game with finitely many firms to a game with infinitely many firms. Taking a market with one significant firm and a nonatomic fringe, we present a microfoundation of dominant-firm price leadership.

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Cited by 5 publications
(2 citation statements)
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“…Tasnádi (2000) provides another game-theoretic foundation of Forchheimer's model, based on a price-setting game with one large firm and a nonatomic fringe in which all firms have strictly convex cost functions. In a follow-up paper Tasnádi (2004) shows that for the case of strictly convex cost functions, the large firm will not accept the role of the leader in a simple two-period timing game.…”
Section: Introductionmentioning
confidence: 99%
“…Tasnádi (2000) provides another game-theoretic foundation of Forchheimer's model, based on a price-setting game with one large firm and a nonatomic fringe in which all firms have strictly convex cost functions. In a follow-up paper Tasnádi (2004) shows that for the case of strictly convex cost functions, the large firm will not accept the role of the leader in a simple two-period timing game.…”
Section: Introductionmentioning
confidence: 99%
“…We gave another microfoundation of Forchheimer's model in a previous paper (Tasnádi, 2000) in a market with one 'large' firm and infinitely many 'small' firms, where we assumed strictly convex cost functions and the large firm to be the exogenously given first mover. Now we want to investigate whether the large firm accepts the role of the first mover.…”
Section: Introductionmentioning
confidence: 99%