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List of Discussion Paper Series
- No.2002-01 (June 2002)
- On the existence and uniqueness of Balanced Temptation Equilibrium in a model with two differentiated products
- Masahiro KOREEDA (Professor, Faculty of Economics, Nagasaki University)
- Abstract:
- Koreeda(1997) demonstrated the existence and uniqueness of Balanced Temptation Equilibrium under converse demand functions and cost functions with some conditions in a Cournot model with two homogeneous goods.
In this paper, in the case that there are two differentiated goods, given two linear demand functions with differentiated goods, we will also demonstrate to transform demand functions into converse demand functions, derive profit possibility frontier from them, and prove the existence and uniqueness of Balanced Temptation Equilibrium.