Patterns of Competitive Interaction

We explore patterns of price competition in an oligopoly where consumers vary the set firms they consider for their purchase and buy from lowest‐priced firm consider. study a pattern consideration, termed “symmetric interactions,” that generalizes models used existing work (duopoly, symmetric firms, with independent reach). Within this class, equilibrium profits are proportional to firm's reach, larger reach higher average prices, reduction number (either by exit or merger) harms consumers. However, increased entry consumer awareness) does not always benefit go on consideration asymmetric interactions. In situations disjoint nested we find equilibria which is “duopolistic”: only two compete within each range. characterize contrasting all three‐firm case.