On a game with price competition and incomplete information

  1. Marta Faias
  2. Javier Hervés Estévez
  3. Emma Moreno García
Working paper series ( RGEA )

Ano de publicación: 2013

Número: 9

Tipo: Documento de traballo


We analyze the phenomenon of price dispersion under the framework of a game with incomplete information where rms compete in prices. The demand faced by each rm depends not only on the prices but also on the types of the rms. Moreover, the information about the types is not complete. We show existence of equilibrium in distributional strategies and we also prove the existence of an approximated equilibrium in pure strategies for this game. We also present some examples of dierent nature to illustrate the main features of the model.