By Xavier Vives
The "oligopoly problem"--the query of the way costs are shaped while the marketplace includes just a couple of competitors--is one of many extra continual difficulties in the heritage of financial concept. during this e-book Xavier Vives applies a latest game-theoretic method of increase a concept of oligopoly pricing.Vives starts off by means of concerning vintage contributions to the field--including these of Cournot, Bertrand, Edgeworth, Chamberlin, and Robinson--to sleek video game conception. In his dialogue of simple game-theoretic instruments and equilibrium, he can pay specific consciousness to contemporary advancements within the thought of supermodular video games. the center component to the ebook, an in-depth therapy of vintage static versions, offers really good lifestyles effects, characterizations of equilibria, extensions to giant markets, and an research of comparative statics with a view towards utilized paintings. the ultimate chapters research dedication matters, access, info transmission, and collusion utilizing a number of instruments: two-stage video games, the modeling of pageant less than uneven details and mechanism layout conception, and the speculation of repeated and dynamic video games, together with Markov ideal equilibrium and differential video games.
Read or Download Oligopoly Pricing: Old Ideas and New Tools PDF
Similar economic theory books
How can economics turn into surely quantitative? this can be the query that French sociologist Gabriel Tarde tackled on the finish of his occupation, and during this pamphlet, Bruno Latour and Vincent Antonin Lépinay supply a full of life advent to the paintings of the forgotten genius of nineteenth-century social notion.
Economists frequently examine markets as given, and take a look at to make predictions approximately who will do what and what's going to take place in those markets marketplace layout, in contrast, doesn't take markets as given; as a substitute, it combines insights from financial and video game concept including logic and classes discovered from empirical paintings and experimental research to help within the layout and implementation of tangible markets in recent times the sphere has grown dramatically, in part as a result winning wave of spectrum auctions within the US and in Europe, that have been designed by means of a couple of famous economists, and partly due to the bring up use of the web because the platform over which markets are designed and run there's now various purposes and a growing to be theoretical literature.
Within the aftermath of the 2008 monetary trouble, economists around the globe have complex theories to give an explanation for the patience of excessive unemployment and coffee development premiums. based on Roger E. A. Farmer, those theories will be divided into best faculties of concept: the tips of pre-Keynesian students who blame the recession on undesirable monetary coverage, and the feedback of "New Keynesian" students who suggest general transformations to pick assumptions of Keynes' basic thought.
This is often one of many first whole surveys of McCulloch's paintings, and it indicates his inspiration to were way more complicated and complete than has formerly been learned.
- Decisions, uncertainty, and the brain
- Public Goods, Redistribution and Rent Seeking
- Governments, Globalization, and International Business
- Conjunction, Contiguity, Contingency: On Relationships between Events in the Egyptian and Coptic Verbal Systems
Extra resources for Oligopoly Pricing: Old Ideas and New Tools
Indeed, consider the case of a twice-continuously differentiable function g. According to the previous remark supermodularity only puts restrictions on the cross partials of g; the other concepts impose restrictions also on the diagonal of the matrix of second derivatives. html [7/8/2007 9:35:13 PM] Document Page 26 Remark 9 The complementarity properties of a family of functions gn : X × T ® R are preserved under several elementary transformations like positive linear combinations, pointwise limits and maximization.
A first type of approach is based on nontopological methods and exploits monotonicity properties of optimization problems using lattice-theoretical results. This approach, which defines the class of supermodular games, will be expounded with some detail given its recent introduction in economic analysis. A second type of approach restricts attention to symmetric games and uses a onedimensional fixed point theorem. Still a third approach uses constructive methods applied to the 8 Cournot model with homogeneous product.
The basic existence theorem with mixed strategies is due to Gliksberg (1952). 9 Consider the game (Ai. pi i p N). If the (pure-) strategy sets are nonempty compact subsets of Euclidean space and payoffs are continuous there is a mixed-strategy Nash equilibrium. Remark 18 It is worth noticing that no quasiconcavity requirement on payoffs and no convexity requirement on strategy spaces are necessary due to the convexifying effect of mixed strategies on best responses. The payoffs and strategy spaces of the mixed extension have the appropriate convexity properties.