PRICE VARIATION DUOPOLY WITH DIFFERENTIATED PRODUCTS AND RANDOM DEMAND,
YALE UNIV NEW HAVEN CONN COWLES FOUNDATION FOR RESEARCH IN ECONOMICS
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The paper shows that under the appropriate conditions the introduction of a random component to demand in a duopolistic or more generally oligopolistic market has the competitive effect of increasing stability in the sense that the market without a random component may have no noncooperative equilibrium point in pure strategies whereas the market with a random component has a noncooperative equilibrium point.
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