Resolving the friction between Turnbull's (1983) and Klemperer-Meyer's (1989) Nash equilibria in affine supply functions

Turnbull (1983) describes unique symmetric Nash equilibria for supply function competition under demand uncertainty which consist of affine strategies that are nonlinear. For the same economy Klemperer and Meyer (1989) derive unique Nash equilibria that are linear. This note shows that the friction between both results comes from a mathematical error in Turnbull (1983). Correcting this error establishes the same linear Nash equilibria for both models.

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Publication Details

Journal
ERSA Working Paper Series
Published
2025-11-05
DOI
https://doi.org/10.71587/cwevzq84
Primary Topic
Economic theories and models
Type
article
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article

Resolving the friction between Turnbull's (1983) and Klemperer-Meyer's (1989) Nash equilibria in affine supply functions

Alexander
ERSA Working Paper Series
Economic theories and models
article

Resolving the friction between Turnbull's (1983) and Klemperer-Meyer's (1989) Nash equilibria in affine supply functions

Alexander
article en

Abstract

Turnbull (1983) describes unique symmetric Nash equilibria for supply function competition under demand uncertainty which consist of affine strategies that are nonlinear. For the same economy Klemperer and Meyer (1989) derive unique Nash equilibria that are linear. This note shows that the friction between both results comes from a mathematical error in Turnbull (1983). Correcting this error establishes the same linear Nash equilibria for both models.

ERSA Working Paper Series
Centre Hospitalier de Cornouaille (FR)
Decent work and economic growth
Openalex Percentile: Top 13%
Economic theories and models
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Resolving the friction between Turnbull's (1983) and Klemperer-Meyer's (1989) Nash equilibria in affine supply functions — Alexander · ERSA Working Paper Series (2025) | TGRS Research Map | TGRS