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Kinked norms of behaviour and cooperation

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  • Currarini, Sergio
  • Marini, Marco

Abstract

This paper revisits a particular norm of behaviour underlying the well known model of kinked demand. We show that under some standard regularity conditions this norm of behaviour sustains the efficient outcome in all symmetric games.

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File URL: http://www.sciencedirect.com/science/article/B6V84-51M0N5P-5/2/b7f7734c7a6abfcd21571b778d5e1c8d
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Bibliographic Info

Article provided by Elsevier in its journal Economics Letters.

Volume (Year): 110 (2011)
Issue (Month): 3 (March)
Pages: 223-225

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Handle: RePEc:eee:ecolet:v:110:y:2011:i:3:p:223-225

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Web page: http://www.elsevier.com/locate/ecolet

Related research

Keywords: Kinked demand Symmetric games Social norms of behaviour;

References

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  1. Domberger, Simon, 1979. "Price Adjustment and Market Structure," Economic Journal, Royal Economic Society, vol. 89(353), pages 96-108, March.
  2. Bhaskar, V., 1988. "The kinked demand curve: A game-theoretic approach," International Journal of Industrial Organization, Elsevier, vol. 6(3), pages 373-384.
  3. Maskin, Eric & Tirole, Jean, 1988. "A Theory of Dynamic Oligopoly, II: Price Competition, Kinked Demand Curves, and Edgeworth Cycles," Econometrica, Econometric Society, vol. 56(3), pages 571-99, May.
  4. Bhaskar, V & Machin, Stephen & Reid, G, 1991. "Testing a Model of the Kinked Demand Curve," Journal of Industrial Economics, Wiley Blackwell, vol. 39(3), pages 241-54, March.
  5. Marschak, T A & Selten, Reinhard, 1978. "Restabilizing Responses, Inertia Supergames, and Oligopolistic Equilibria," The Quarterly Journal of Economics, MIT Press, vol. 92(1), pages 71-93, February.
  6. George J. Stigler, 1947. "The Kinky Oligopoly Demand Curve and Rigid Prices," Journal of Political Economy, University of Chicago Press, vol. 55, pages 432.
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