Technical Note—Existence and Uniqueness of Price Equilibria in Defender

Published Online:https://doi.org/10.1287/mksc.7.1.92

This note provides a formal proof that for the Defender model, with uniformly distributed tastes, the Nash price equilibria exist and, for a given set of positions, that they are unique. We also show that the profit function is well-behaved—continuous and quasi-concave—and that the maximum occurs on the concave portion of the curve.

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