PQ oligopoly, proportional rationing, and randomly ordered consumers

Abstract

In a PQ oligopoly, firms pick prices and quantities simultaneously, and unlike with the traditional Cournot and Bertrand models, market clearing is not imposed. It is thus necessary to specify the rationing rule. Proportional rationing is one of the popular choices, often justified through a notion of randomly ordered consumers with varied reservation… (More)
DOI: 10.1007/s10100-015-0400-0

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