Dynamic Oligopoly with Incomplete Information

Dynamic Games with Incomplete Information

Dynamic Network Formation with Incomplete Information

How do networks form and what is their ultimate topology? Most of the literature that addresses these questions assumes complete information: agents know in advance the value of linking to other agents, even with agents they have never met and with whom they have had no previous interaction (direct or indirect). This paper addresses the same questions under what seems to us to be the much more ...

Dynamic Online Pricing with Incomplete Information

Consider the pricing decision for a manager at large online retailer, such as Amazon.com, that sells millions of products. The pricing manager must decide on real-time prices for each of these product. Due to the large number of products, the manager must set retail prices without complete demand information. A manager can run price experiments to learn about demand and maximize long run profit...

Dynamic Oligopoly with Network Effects*

We analyze oligopolistic competition in a multi-period dynamic setting for goods with network effects. Two or more infinitely-lived firms produce incompatible products differentiated in their inherent quality. Consumers live for a single period and receive the network effect of the previous period’s sales. We show existence and characterize Markov perfect equilibria that are unique given market...

Oligopoly Price Competition with Incomplete Information: Convergence to Mixed−strategy Equilibria

This paper considers a market in which firms have incomplete information about a parameter of other sellers’ payoff functions, e.g., a cost parameter. The dispersion of privately observed payoff parameters essentially enables firms to randomize their pricing. As the population distribution of payoff parameters collapses to a point, the distribution of pure-strategy prices converges to the mixed...