Consistent Conjectures Equilibria: A Reformulation Showing Non-Uniqueness


Paul D. Klemperer and Margaret A. Meyer

Nuffield College, Oxford University



Economics Letters, (1988), 27, pp.111-115.

We interpret both Bresnahan's original (1981) definition of consistent conjectures equilibria and his generalized (1983) definition as dominant strategy equilibria in reaction functions. We employ a simple constructive argument to show that every outcome satisfies the generalized definition.