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Prisoners' Dilemma in Duopoly (Super)Games

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  • Lambertini, Luca

Abstract

The choice between quantity and price in order to stabilize collusion is modeled here. It is shown that this relocates the prisoners’ dilemma backwards, from the market stage to the stage where the market variable is chosen in order to sustain collusion, and where discount rates appear as the payoffs. Likewise, a prisoners’ dilemma arises also when both the market variable and the type of behavior (cooperative or non-cooperative) are simultaneously chosen.

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Bibliographic Info

Article provided by Elsevier in its journal Journal of Economic Theory.

Volume (Year): 77 (1997)
Issue (Month): 1 (November)
Pages: 181-191

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Handle: RePEc:eee:jetheo:v:77:y:1997:i:1:p:181-191

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Web page: http://www.elsevier.com/locate/inca/622869

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Cited by:
  1. Lambertini, L. & Poddar, S. & Sasaki, D., 1998. "RJVs and Price collusion Under Endogenous Product Differentiation," Department of Economics - Working Papers Series 666, The University of Melbourne.
  2. L. Lambertini & S. Poddar & D. Sasaki, 1998. "RJV in Product Innovation and the Form of Market Competition," Working Papers 343, Dipartimento Scienze Economiche, Universita' di Bologna.
  3. Kangsik, Choi, 2008. "Cournot-Bertrand competition in a unionized mixed duopoly," MPRA Paper 12787, University Library of Munich, Germany, revised 26 Dec 2008.
  4. Alipranti, Maria & Milliou, Chrysovalantou & Petrakis, Emmanuel, 2014. "Price vs. quantity competition in a vertically related market," Economics Letters, Elsevier, vol. 124(1), pages 122-126.
  5. L. Lambertini & S. Poddar & D. Sasaki, 1997. "Standardization and the Stability of Collusion," Working Papers 298, Dipartimento Scienze Economiche, Universita' di Bologna.
  6. Kangsik, Choi, 2011. "Cournot and Bertrand competition with asymmetric costs in a mixed duopoly," MPRA Paper 34100, University Library of Munich, Germany.
  7. S. Baldelli & L. Lambertini, 2004. "The gains from cooperative R&D with a concave technology and spillovers," Working Papers 510, Dipartimento Scienze Economiche, Universita' di Bologna.
  8. Trishita Bhattacharjee & Rupayan Pal, 2013. "Price vs. Quantity in duopoly with strategic delegation: Role of network externalities," Indira Gandhi Institute of Development Research, Mumbai Working Papers 2013-010, Indira Gandhi Institute of Development Research, Mumbai, India.
  9. Lambertini, L. & Sasaki, D., 1999. "A Cost-Side Analysis on Collusive Sustainability," Department of Economics - Working Papers Series 710, The University of Melbourne.
  10. R. Cellini & L. Lambertini, 2002. "Advertising with Spillover Effects in a Differential Oligopoly Game With Differentiated Goods," Working Papers 430, Dipartimento Scienze Economiche, Universita' di Bologna.
  11. R. Cellini & L. Lambertini, 2002. "Private and Social Incentives Towards Investment in Product Differentiation," Working Papers 431, Dipartimento Scienze Economiche, Universita' di Bologna.
  12. Poddar, Sougata & Sasaki, Dan, 2002. "The strategic benefit from advance production," European Journal of Political Economy, Elsevier, vol. 18(3), pages 579-595, September.
  13. Kangsik, Choi, 2012. "Cournot and Bertrand competition with asymmetric costs in a mixed duopoly revisited," MPRA Paper 37704, University Library of Munich, Germany, revised 28 Mar 2012.

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