The Econometric SocietyEdited by: Guido W. Imbens • Print ISSN: 0012-9682 • Online ISSN: 1468-0262
Econometrica: Nov, 1992, Volume 60, Issue 6
https://doi.org/0012-9682(199211)60:6<1293:NBC>2.0.CO;2-8
p. 1293-1330
David M. Mandy
Using a standard model of nonuniform pricing, properties are derived for both free entry and limited entry Bertrand equilibrium in nonuniform strategies. These properties follow from the feasibility of Bertrand undercutting with nonuniform prices. When there is free entry, zero-profit minimum average cost production occurs in equilibrium. If, in addition, average cost attains its minimum at any quantity below market output, all prices collapse to a uniform price equal to minimum average cost. A necessary condition for existence of this equilibrium is derived and compared to similar conditions from uniform price theory. Analogies to uniform price theory depend on the rationing capabilities of nonuniform prices and the rationing assumptions employed in uniform price models. Without free entry, prices may not collapse to a uniform price in equilibrium. Also, positive profit may occur but all firms must earn equal profit and incur equal marginal cost, while consumers pay average outlay no greater than marginal cost.
March 5, 2024
The terms of the Editors of the Econometric Society's three journals end June 30, 2025. We are pleased to announce the incoming Editors and to thank the outgoing Editors for their excellent and continuing service.
Econometrica: Since 2019, Guido Imbens has served as the 14th Editor of Econometrica. On July 1, 2025, Marina Halac will become the Editor.
Quantitative Economics: Stéphane Bonhomme has been the Editor of Quantitative Economics since 2021. His successor will be Bernard Salanié.
Theoretical Economics: The Editor of Theoretical Economics since 2021 has been Simon Board. Taking over for him in July 2025 will be Federico Echenique.
Guido, Stéphane, and Simon have been outstanding Editors. We are grateful to them for the work they have done and will continue to do, and we look forward to further congratulating them next year. We believe Marina, Bernard, and Federico will be outstanding successors and we thank them in advance for their service.
Finally, we are grateful to Larry Samuelson for chairing all three search committees, and we thank the search committee members for their hard and fruitful work:
Econometrica: Christian Dustmann, Lars Hansen, Alessandro Lizzeri, George Mailath, Ariel Pakes, Helene Rey, and Elie Tamer.
QE: Kate Ho, Michael Keane, Felix Kubler, Whitney Newey, and Frank Schorfheide.
TE: Jeff Ely, Johannes Horner, Gilat Levy, Meg Meyer, and Ran Spiegler.
