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@inproceedings{992639, author = {Staněk, Rostislav}, address = {Karviná}, booktitle = {Proceedings of 30th International Conference Mathematical Methods in Economics}, edition = {1}, editor = {Ramík, J., Stavárek, D.}, keywords = {bertrand competition; imperefect information; capacity constraint; mixedstrategy equilibrium}, howpublished = {tištěná verze "print"}, language = {eng}, location = {Karviná}, isbn = {9788072487790}, pages = {830835}, publisher = {Silesian University, School of Business Administration}, title = {Price Competition with Capacity Constraint and Imperfect Information}, year = {2012} }
TY  JOUR ID  992639 AU  Staněk, Rostislav PY  2012 TI  Price Competition with Capacity Constraint and Imperfect Information PB  Silesian University, School of Business Administration CY  Karviná SN  9788072487790 KW  bertrand competition KW  imperefect information KW  capacity constraint KW  mixedstrategy equilibrium N2  KrepsSheinkman model introduces a capacity choice into the model of price competition. It shows that in the context of a oneshot game, the environment in which oligopolists make capacity decisions and then post prices for their products has the same Nash equilibrium as the environment in which oligopolists make output decisions and sell their output at market clearing prices. The aim of this paper is to investigate the robustness of this claim. I consider the twostage game where firms make capacity decision rst and then compete in prices subject to their supply limits. Contrary to Kreps and Sheinkman, I assume that firms have imperfect information about their rival's capacity choice. I show that in this case the Cournot equilibrium conclusion does not hold, because the model has no pure strategy equilibrium. Moreover, the mixed strategy equilibrium has a surprising property. Expected market price increases when there are more firms in the market. This conclusion holds for surplusmaximizing as well as proportional rationing rule. ER 
STANĚK, Rostislav. Price Competition with Capacity Constraint and Imperfect Information. In Ramík, J., Stavárek, D. \textit{Proceedings of 30th International Conference Mathematical Methods in Economics}. 1st ed. Karviná: Silesian University, School of Business Administration, 2012. p.~830835. ISBN~9788072487790.
