Linear Convergence of Tatônnement in a Bertrand Oligopoly

  • Guillermo Gallego
  • Woonghee Tim Huh
  • Wanmo Kang
  • Robert Phillips
Conference paper
Part of the Lecture Notes in Computer Science book series (LNCS, volume 3982)


We show the linear convergence of the tatônnement scheme in a Bertrand oligopoly price competition game using a possibly asymmetric attraction demand model with convex costs. To demonstrate this, we also show the existence of the equilibrium.


Nash Equilibrium Price Competition Unique Equilibrium Price Vector Linear Convergence 


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Copyright information

© Springer-Verlag Berlin Heidelberg 2006

Authors and Affiliations

  • Guillermo Gallego
    • 1
  • Woonghee Tim Huh
    • 1
  • Wanmo Kang
    • 1
  • Robert Phillips
    • 2
  1. 1.Columbia UniversityNew YorkUSA
  2. 2.Stanford University and Nomis SolutionsUSA

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