Oligopolistic competition as a common agency game
AbstractOligopolistic competition is analyzed in a complete information multi-principal common agency framework, where principals are firms supplying differentiated goods and the agent is a representative consumer. We first propose a canonical formulation of common agency games, and a parameterization of the set of equilibria based on the Lagrange multipliers associated with the participation and the incentive compatibility constraints of each principal. This is used to characterize the set of equilibria in the intrinsic and non-intrinsic games. The former includes the latter, as well as the standard price and quantity equilibrium outcomes. It may also include the collusive solution.
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Bibliographic InfoArticle provided by Elsevier in its journal Games and Economic Behavior.
Volume (Year): 70 (2010)
Issue (Month): 1 (September)
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Web page: http://www.elsevier.com/locate/inca/622836
Common agency Oligopolistic competition Competitive toughness Tacit collusion;
Other versions of this item:
- Claude, D’ASPREMONT & Rodolphe, DOS SANTOS FERREIRA, 2005. "Oligopolistic Competition as a Common Agency Game," Discussion Papers (ECON - DÃ©partement des Sciences Economiques) 2005018, Université catholique de Louvain, Département des Sciences Economiques.
- D’ASPREMONT, Claude & DOS SANTOS FERREIRA, Rodolphe, 2005. "Oligopolistic competition as a common agency game," CORE Discussion Papers 2005018, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE).
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