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Non cooperative Stackelberg network formation

Author

Listed:
  • Juan M. C. Larrosa

Abstract

Non-cooperative network formation games in industrial organizations analyze how firms create links. We assume that links portray cost-reducing information and that access to this information is not reciprocal. We study the consequences in terms of profits if one firm can move first in establishing a link. A classic model of exogenous Stackelberg leadership is developed and first-mover advantage is observed. ***** Los juegos de formación de red en organización industrial analizan cómo se crean enlaces entre empresas. El modelo supone que los enlaces conllevan información que reduce costos de producción y el acceso a dicha información no es recíproco. Se estudia las consecuencias en los beneficios si una firma puede mover primero al establecer los enlaces. Un modelo clásico de liderazgo exógeno de Stackelberg es desarrollado y las ventajas de primer movedor son observadas.

Suggested Citation

  • Juan M. C. Larrosa, 2014. "Non cooperative Stackelberg network formation," Revista Cuadernos de Economia, Universidad Nacional de Colombia, FCE, CID, August.
  • Handle: RePEc:col:000093:012107
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    File URL: http://www.fce.unal.edu.co/media/files/documentos/Cuadernos/63/v33n63a02.pdf
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    References listed on IDEAS

    as
    1. van Hoesel, Stan, 2008. "An overview of Stackelberg pricing in networks," European Journal of Operational Research, Elsevier, vol. 189(3), pages 1393-1402, September.
    2. Amir, Rabah & Grilo, Isabel, 1999. "Stackelberg versus Cournot Equilibrium," Games and Economic Behavior, Elsevier, vol. 26(1), pages 1-21, January.
    3. Billand, P. & Bravard, C., 2004. "Non-cooperative networks in oligopolies," International Journal of Industrial Organization, Elsevier, vol. 22(5), pages 593-609, May.
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    More about this item

    Keywords

    Non-cooperative games; network formation strategies; Stackelberg equilibrium; sequential decision;
    All these keywords.

    JEL classification:

    • C72 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Noncooperative Games
    • D43 - Microeconomics - - Market Structure, Pricing, and Design - - - Oligopoly and Other Forms of Market Imperfection
    • L13 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Oligopoly and Other Imperfect Markets
    • D85 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Network Formation

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