BECKMANN'S EDGEWORTH-BERTRAND DUOPOLY EXAMPLE REVISITED

In the Edgeworth-Bertrand price game, each player has a capacity output, faces the same market demand, and calls out a price. The high-price caller gets some residual market at her price. The low-price caller gets her capacity at her price or all of the market. We re-work Beckmann's closed form solution to his symmetric version of this game, mostly in mixed strategies, and observe that expected price played by a player declines with the size of her exogenously given capacity.Bertrand duopoly, price game, Journal Classification: C72, Journal Classification: D43