TITLE:
A Pure Strategy Nash Equilibrium Bertrand Game with Strictly Positive Profits
AUTHORS:
Yongjian Pu, Lei Zhu
KEYWORDS:
Bertrand Game, Nash Equilibrium, Pure Strategy, Strictly Positive Profits
JOURNAL NAME:
Open Journal of Social Sciences,
Vol.4 No.3,
March
1,
2016
ABSTRACT: This paper explores the existence of pure
strategy Nash equilibrium of a Bertrand game with strictly positive profits. We
show that when fixed cost is small enough, there always exists pure strategy
Nash equilibrium with strictly positive profits if firms have quadratic cost
functions and linear demand curve.