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Prisoners’ Dilemma in Duopoly (Super)games

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Author Info

  • Luca Lambertini

    (Institute of Economics, University of Copenhagen)

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

Paper provided by University of Copenhagen. Department of Economics. Centre for Industrial Economics in its series CIE Discussion Papers with number 1997-08.

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Length: 10 pages
Date of creation: May 1997
Date of revision:
Publication status: Published in: Journal of Economic Theory. November 1997; 77(1): 181-91
Handle: RePEc:kud:kuieci:1997-08

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Keywords: meta-game; supergame; prisoners’ dilemma;

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Citations

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Cited by:
  1. Luca Lambertini & Sougata Poddar & Dan Sasaki, 1997. "RJVs and Price Collusion under Endogenous Product Differentiation," Discussion Papers 97-09, University of Copenhagen. Department of Economics.
  2. Luca Lambertini & Gianpaolo Rossini, 2009. "The Gains From Cooperative R&D With A Concave Technology And Spillovers," International Game Theory Review (IGTR), World Scientific Publishing Co. Pte. Ltd., vol. 11(01), pages 77-85.
  3. 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.
  4. Luca Lambertini & Sougata Poddar & Dan Sasaki, 1997. "Standardization and the Stability of Collusion," CIE Discussion Papers 1997-14, University of Copenhagen. Department of Economics. Centre for Industrial Economics.
  5. Lambertini, L. & Sasaki, D., 1999. "A Cost-Side Analysis on Collusive Sustainability," Department of Economics - Working Papers Series 710, The University of Melbourne.
  6. 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.
  7. Poddar, Sougata & Sasaki, Dan, 2002. "The strategic benefit from advance production," European Journal of Political Economy, Elsevier, vol. 18(3), pages 579-595, September.
  8. R. Cellini & L. Lambertini, 2002. "Private and Social Incentives Towards Investment in Product Differentiation," Working Papers 431, Dipartimento Scienze Economiche, Universita' di Bologna.
  9. 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.
  10. Kangsik, Choi, 2008. "Cournot-Bertrand competition in a unionized mixed duopoly," MPRA Paper 12787, University Library of Munich, Germany, revised 26 Dec 2008.

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