Correcting Turnbull’s (1983) characterization of Nash equilibria in affine supply function competition
Abstract Turnbull (Econ Lett 13: 253–258, 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 (Econometrica 79: 1919–1966, 1989) derive unique Nash equilibria that are linear. This note shows that the friction between both results comes from a mathematical error in Turnbull (Econ Lett 13: 253–258, 1983). Correcting this error establishes the same linear Nash equilibria for both models.
Authors
- Alexander Zimper (ORCID: https://orcid.org/0000-0002-3730-3086)
Institutions
- University of Pretoria (ZA)
Publication Details
- Journal
- Economic Theory Bulletin
- Published
- 2026-08-14
- DOI
- https://doi.org/10.1007/s40505-026-00316-5
- Primary Topic
- Economic theories and models
- Type
- article
- Field-Weighted Citation Impact
- 0.00
Funders
- University of Pretoria