Convexity of Bertrand oligopoly TU-games with differentiated products

Aymeric Lardon (1)

1 GREDEG - Groupe de Recherche en Droit, Economie et Gestion

We consider Bertrand oligopoly TU-games with differentiated products. We assume that the demand system is Shubik’s and that firms operate at a constant and identical marginal and average cost. Our main results state that Bertrand oligopoly TU-games in alpha, beta and gamma-characteristic function form satisfy the convexity property, meaning that there exist strong incentives for large-scale cooperation between firms on prices.

Mots clés: Bertrand competition; Cooperation; Core; Convexity

Domaines: Economies et finances

Aymeric Lardon. Convexity of Bertrand oligopoly TU-games with differentiated products. 2018. ⟨halshs-00544056v2⟩