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Indiana University Bloomington

Doctoral Programs

1960 Notable

From 1960-2013, we prepared nearly 1,200 men and women
for rewarding academic careers — that’s more than any other university.

Journal Articles

Winner-Take-All Price Competition

2002, Economic Theory

Michael R. Baye, John Morgan


We analyze an oligopoly model of homogeneous product price competition that allows for discontinuities in demand and/or costs. Conditions under which only zero profit equilibrium outcomes obtain in such settings are provided.
We then illustrate through a series of examples that the conditions provided are “tight” in the sense that their relaxation leads to positive profit outcomes.


Michael R. Baye and John Morgan, "Winner-Take-All Price Competition," Economic Theory, Vol. 19 (2002), pp. 271-282.


Price competition, Discontinuity, Bertrand, Hotelling