Efficiency in decentralized oligopolistic markets

نویسنده

  • Francesco Nava
چکیده

The paper investigates how quantity competition operates in economies in which a network describes the set of feasible trades. A model is presented in which equilibrium dictates whether an individual buys, sells, or intermediates goods. The analysis first considers small economies, and provides suffi cient conditions for equilibrium existence, a characterization of prices and flows, and some negative results relating welfare to network structure. The second and central part of the analysis considers behavior in large markets, and presents necessary and suffi cient conditions on the network structure for equilibria to be approximately effi cient when the number of players at various locations of the economy is large. ∗I am indebted to Matt Jackson and to Ted Bergstrom for their valuable comments, and to Hugo Sonnenschein, Roger Myerson, Phil Reny and Balazs Szentes for their advice. I also would like to thank the seminar participants at Harvard/MIT, UChicago, UW Madison, UCSB, Caltech, BU, UBC, VTech, LSE, UCL, Cambridge, Essex, Royal Holloway, Cardiff, Pompeo Favra, Universitat Autonoma Barcelona, Bocconi, Bank of Italy, Maastricht. †London School of Economics, [email protected].

برای دانلود رایگان متن کامل این مقاله و بیش از 32 میلیون مقاله دیگر ابتدا ثبت نام کنید

ثبت نام

اگر عضو سایت هستید لطفا وارد حساب کاربری خود شوید

منابع مشابه

A multi-agent approach for planning activities in decentralized electricity markets

Despite the rigour and ability of game theory to cope with oligopolistic electric markets, it fails to model many existing behaviours in the real-world circumstances. The traditional models such as statistical extrapolation or econometrics are not capable to anticipate the changes in the pattern of the market prices due to the future structural changes. Furthermore, in such free and open market...

متن کامل

Modelling Oligopolistic Closed Loop Supply Chains

This paper uses variational inequalities to model an oligopolistic closed-loop supply chain engaged in a Cournot pricing game. The manufacturers produce a homogenous product for a set of customer markets. The product can be comprised of both virgin materials and recycled materials obtained from used products returned by the customers. Society is modelled as an additional player whose objective ...

متن کامل

Strategic Use of Forward Contracts and Capacity Constraints

Allaz and Vila (1993) argued that forward markets mitigate market power and enhance efficiency. This paper analyzes the implications of forward markets when oligopolistic firms endogenously choose capacity levels. The paper shows that the forward market that occurs after the investment decision is committed may discourage total investment and result in a Pareto-inferior outcome. However, the fo...

متن کامل

Pricing and Trust

We experimentally examine the effects of flexible and fixed prices in markets for experience goods in which demand is driven by trust. With flexible prices, we observe low prices and high quality in competitive (oligopolistic) markets, and high prices coupled with low quality in non-competitive (monopolistic) markets. We then introduce a regulated intermediate price above the oligopoly price an...

متن کامل

Subsidies in oligopoly markets: a welfare comparison between symmetric and asymmetric costs

Oligopolistic industries generally produce less than is socially desirable. As a result, the use of production subsidies is often suggested as a means of raising production toward the efficient level in imperfectly competitive markets. In cases where firms are equally efficient in producing the good, the common prescription is a policy of uniform subsidization, as suggested by Besley (1989).(1)...

متن کامل

ذخیره در منابع من


  با ذخیره ی این منبع در منابع من، دسترسی به آن را برای استفاده های بعدی آسان تر کنید

عنوان ژورنال:
  • J. Economic Theory

دوره 157  شماره 

صفحات  -

تاریخ انتشار 2015