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Cones of games arising from market entry problems

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Author Info
Branzei, R.
Tijs, S.
Timmer, J. (Tilburg University, Center for Economic Research)
Abstract

Market entry situations are modelled, where an entrepreneur has to decide for a collection of markets which market to enter and which not. The entrepreneur can improve his prior information by making use of a group of informants, each of them knowing the situation in one or more markets. For such a market entry situation a related cooperative game is introduced, which can be helpful in dealing with the question of how to share the reward of cooperation. The games arising turn out to be elements of the cone of information market games which were introduced for another economic context. This implies that the cooperative solutions of these games have interesting properties. Extra attention is paid to the subcone of information market games arising from market entry situations where for each market only one informant knows the state of the market.

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Paper provided by Tilburg University, Center for Economic Research in its series Discussion Paper with number 44.

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Date of creation: 2000
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Handle: RePEc:dgr:kubcen:200044

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Find related papers by JEL classification:
C71 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Cooperative Games
D89 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Other

References listed on IDEAS
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  1. Shapley, Lloyd S. & Shubik, Martin, 1969. "On market games," Journal of Economic Theory, Elsevier, vol. 1(1), pages 9-25, June. [Downloadable!] (restricted)
  2. Vincent Feltkamp & Javier Arin, 1997. "The Nucleolus and Kernel of Veto-Rich Transferable Utility Games," International Journal of Game Theory, Springer, vol. 26(1), pages 61-73.
  3. Branzei, R. & Tijs, S. & Timmer, J., 2000. "Collecting information to improve decision-making," Discussion Paper 26, Tilburg University, Center for Economic Research. [Downloadable!]
  4. Ehud Kalai & Eitan Zemel, 1980. "On Totally Balanced Games and Games of Flow," Discussion Papers 413, Northwestern University, Center for Mathematical Studies in Economics and Management Science. [Downloadable!]
  5. van den Nouweland, A. & Borm, P. & van Golstein, W. & Bruinderink, R.G. & Tijs, S., 1994. "A Game Theoretic Approach to Problems in Telecommunication," Papers 9407, Tilburg - Center for Economic Research.
  6. Muto, Shigeo & Potters, Jos & Tijs, Stef, 1989. "Information Market Games," International Journal of Game Theory, Springer, vol. 18(2), pages 209-26.
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