Convexity of Bertrand oligopoly TU-games with differentiated products
AbstractIn this article we consider Bertrand oligopoly TU-games with differentiated products. We assume that the demand system is Shubik's (1980) and that firms operate at a constant and identical marginal and average cost. First, we show that the alpha and beta- characteristic functions (Aumann 1959) lead to the same class of Bertrand oligopoly TU-games and we prove that the convexity property holds for this class of games. Then, following Chander and Tulkens (1997) we consider the gamma-characteristic function where firms react to a deviating coalition by choosing individual best reply strategies. For this class of games, we show that the Equal Division Solution belongs to the core and we provide a sufficient condition under which such games are convex.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
Bibliographic InfoPaper provided by HAL in its series Post-Print with number halshs-00544056.
Date of creation: 2010
Date of revision:
Note: View the original document on HAL open archive server: http://halshs.archives-ouvertes.fr/halshs-00544056/en/
Contact details of provider:
Web page: http://hal.archives-ouvertes.fr/
Bertrand oligopoly TU-games; Core; Convexity; Equal Division Solution;
This paper has been announced in the following NEP Reports:
- NEP-ALL-2010-12-18 (All new papers)
- NEP-BEC-2010-12-18 (Business Economics)
- NEP-COM-2010-12-18 (Industrial Competition)
- NEP-GTH-2010-12-18 (Game Theory)
- NEP-IND-2010-12-18 (Industrial Organization)
You can help add them by filling out this form.
CitEc Project, subscribe to its RSS feed for this item.
- Dongshuang Hou & Theo Driessen & Aymeric Lardon, 2011. "Convexity and the Shapley value in Bertrand oligopoly TU-games with Shubik's demand functions," Working Papers halshs-00610838, HAL.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (CCSD).
If references are entirely missing, you can add them using this form.