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.

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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

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article

Correcting Turnbull’s (1983) characterization of Nash equilibria in affine supply function competition

Alexander Zimper
Economic Theory Bulletin
Economic theories and models
article

Correcting Turnbull’s (1983) characterization of Nash equilibria in affine supply function competition

Alexander Zimper
article en

Abstract

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.

Economic Theory BulletinVol. 14(2)
University of Pretoria (ZA)
University of Pretoria
Openalex Percentile: Top 5%
Economic theories and models
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