A Folk Theorem for One-Shot Bertrand Games

@inproceedings{Baye2002AFT,
  title={A Folk Theorem for One-Shot Bertrand Games},
  author={Michael R. Baye},
  year={2002}
}
We show that bounded monopoly profits are essential for the uniqueness of the Bertrand paradox (zero profit) outcome. Otherwise, a folk theorem obtains for one-shot homogeneous product Bertrand games: any positive (but finite) payoff vector can be achieved in a symmetric mixed-strategy Nash equilibrium. JEL Numbers: D43, C72