Equilibrium existence with spillover demand
| Autor: | Dries Vermeulen, Iwan Bos |
|---|---|
| Přispěvatelé: | RS: GSBE Theme Conflict & Cooperation, Organisation,Strategy & Entrepreneurship, QE Math. Economics & Game Theory, RS: GSBE Theme Data-Driven Decision-Making, RS: FSE DACS Mathematics Centre Maastricht |
| Jazyk: | angličtina |
| Rok vydání: | 2021 |
| Předmět: |
TheoryofComputation_MISCELLANEOUS
d40 - Market Structure and Pricing: General Economics and Econometrics Class (set theory) Market Structure and Pricing: General COMPETITION Bertrand-Edgeworth competition Market Structure and Market Performance: General Oligopoly symbols.namesake Spillover effect Spillover demand Economics Edgeworth paradox Consumer behaviour l10 - Market Structure Firm Strategy and Market Performance: General TheoryofComputation_GENERAL l10 - Market Structure Firm Strategy BERTRAND Nash equilibrium symbols Oligopoly theory Mathematical economics Finance Price-quantity competition |
| Zdroj: | Economics Letters, 208:110061. Excerpta Medica, Elsevier Science |
| ISSN: | 1873-7374 0165-1765 |
| DOI: | 10.1016/j.econlet.2021.110061 |
| Popis: | Non-existence of a pure-strategy Nash equilibrium is a persistent problem in oligopoly models where sellers compete in prices and quantities. At the heart of this problem are unserved customers who are still willing to visit a less preferred supplier (i.e., so-called spillover demand). This note develops a consumer behavior model with spillover demand. Within this model there is a class of demand specifications for which a pure-strategy Nash equilibrium exists. This price-quantity equilibrium is shown to coincide with the Bertrand price equilibrium. |
| Databáze: | OpenAIRE |
| Externí odkaz: |
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