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On the Endogeneity and Robustness of Cournot-Nash and Stackelberg Equilibria: Games of Accumulation

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Author Info
Romano, Richard
Yildirim, Huseyin

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Abstract

We characterize equilibria of games with two properties: (i) Agents have the opportunity to adjust their strategic variable after their initial choices and before payoffs occur; but (ii) they can only add to their initial amounts. The equilibrium set consists of just the Cournot-Nash outcome, one or both Stackelberg outcomes, or a continuum of points including the Cournot-Nash outcome and one or both Stackelberg outcomes. A simple theorem that uses agents' standard one-period reaction functions and the one-period Cournot-Nash and Stackelberg equilibria delineates the equilibrium set. Applications include contribution games to public goods, oligopoly games, and rent-seeking games.

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Paper provided by Duke University, Department of Economics in its series Working Papers with number 01-06.

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Date of creation: 2001
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Handle: RePEc:duk:dukeec:01-06

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C72 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Noncooperative Games
D43 - Microeconomics - - Market Structure and Pricing - - - Oligopoly and Other Forms of Market Imperfection
H40 - Public Economics - - Publicly Provided Goods - - - General

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