SFB 303 Discussion Paper No. A - 469

Author: Peitz, Martin
Title: Aggregation and Strategic Complementarity in a Model of Price Competition
Abstract: In a differentiated oligopoly a finite number of firms compete in prices. Using aggregation procedures of Grandmont and Prekopa I derive the existence and uniqueness of an equilibrium from distributional assumptions on the customers' characteristics. Furthermore, I apply the theory of games with strategic complementarities to obtain results on comparative statics and learning.
Keywords: Demand Aggregation, Oligopoly Equilibrium, Strategic Complementarity, Product Differentiation, Multiplier Effect, Adaptive Learning
JEL-Classification-Number: D11, D43, L13
Creation-Date: January 1995
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