Billand, Pascal and Bravard, Christophe and Chakrabarti, Subhadip and Sarangi, Sudipta (2010): Networks of Collaboration in Multi-market Oligopolies.
Download (280kB) | Preview
The result that firms competing in a Cournot oligopoly with pairwise collaboration form a complete network under zero or negligible link formation costs provided by Goyal and Joshi (2003) no longer hold in multi-market oligopolies. Link formation in one market aﬀects a firm’s profitability in another market in a possibly negative way resulting in the fact that it is no longer always profitable in an unambiguous manner. With non-negative link formation costs, the stable networks have a dominant group architecture and eﬃcient networks are charecterized by at most one non-singleton component with a geodesic distance between players that is less than three.
|Item Type:||MPRA Paper|
|Original Title:||Networks of Collaboration in Multi-market Oligopolies|
|Keywords:||networks, collaboration, R & D|
|Subjects:||L - Industrial Organization > L1 - Market Structure, Firm Strategy, and Market Performance > L13 - Oligopoly and Other Imperfect Markets
L - Industrial Organization > L2 - Firm Objectives, Organization, and Behavior > L20 - General
C - Mathematical and Quantitative Methods > C7 - Game Theory and Bargaining Theory > C70 - General
|Depositing User:||Subhadip Chakrabarti|
|Date Deposited:||18. Jan 2011 20:17|
|Last Modified:||13. Feb 2013 07:19|
Bernheim, B.D. and M.D. Whinston, “Multimarket Contact and Collusive Behavior”, Rand Journal of Economics, Vol. 21, 1-26.
Billand, P., C. Bravard, S. Chakrabarti and S. Sarangi, (2008) “Corporate Espionage”, Working Paper.
Bowley, A.L., (1924) The Mathematical Groundwork of Economics, Oxford: Oxford University Press.
Bulow, J.I., J.D. Geanakopolos and Paul D. Klemperer, (1985) “Multimarket Oligopoly: Strategic Substitutes and Complements”, The Journal of Political Economy, Vol. 93, 488-511.
Dixit, A. (1979), “A Model of Duopoly Suggesting a Theory of Entry Barriers”, Bell Journal of Economics, Vol. 10, 20-32.
Chakrabarti, S. and H. Haller, (2007) “An Analysis of Advertising Wars”, Manchester School, forthcoming.
Goyal, G. and S. Joshi, (2003) “Networks of Collaboration in Oligopoly”, Games and Economic Behavior, Vol. 43, 57-85.
Goyal, G. and S. Joshi (2006) “Unequal Connections”, International Journal of Game Theory, Vol. 34, 319-349.
Jackson, M. and A.Wolinsky, (1996) “A Strategic Model of Social and Economic Networks”, Journal of Economic Theory, Vol. 71, 44-74.
Jackson, M., (2005) “Allocation Rules for Network Games”, Games and Economic Behavior, Vol. 51, 128-154.
Martin, S., (1993) Advanced Industrial Economics, Oxford: Blackwell.
Spence, M., (1976) “Product Diﬀerentiation and Welfare”, American Economic Review, Vol. 66, 407-414.
Tirole, J., (1988) The Theory of Industrial Organization, Cambridge, MA, and London: The MIT Press.
Vives, X., (1999) Oligopoly Pricing: Old Ideas and New Tools, Cambridge, MA, and London: The MIT Press.
Available Versions of this Item
- Networks of Collaboration in Multi-market Oligopolies. (deposited 18. Jan 2011 20:17) [Currently Displayed]