ABSTRACT
In the context of B6hm's example, the latter assumption is not plausible; for, in that example, neither oligopolist has a taste for the other's commodity. It would be more plausible to assume that each oligopolist seeks to maximize his or her utility on the assumption that the other oligopolist holds constant the price of his or her commodity in terms of the third commodity. In other words, oligopolists with the assumed preferences would not want to play B6hm's game, in which the strategic variables are nominal prices and the price normalization is part of the formal rules of the game. Instead, they would want to playa more conventional game, with relative prices as the strategic variables and with rules which say nothing about price normalization.
