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Delbono, Flavio ; Lambertini, Luca
(2015)
On the properties of linear supply functions in oligopoly.
Bologna:
Dipartimento di Scienze economiche DSE,
p. 8.
DOI 10.6092/unibo/amsacta/4290.
In: Quaderni - Working Paper DSE
(1014).
ISSN 2282-6483.
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Abstract
In this note we revisit the result by Menezes and Quiggin (2012), showing that under linear supply function competition, the same Nash equilibrium results when arms choose slopes or intercepts of their supply functions. This is because the first order conditions emerging in the two strategy spaces are not linearly independent.
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