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Justifiability of Bayesian Implementation in Oligopolistic Markets

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  • Koray, Semih
  • Saglam, Ismail

Abstract

We show that in oligopolistic markets the social choice correspondence which selects all socially efficient outcomes is Nash implementable if the number of firms is at least two. Thus, monopoly regulation whenever consumers are favored by the designer or the society is the only framework, among all oligopolistic regulatory models, where Bayesian approach is indispensable.

Suggested Citation

  • Koray, Semih & Saglam, Ismail, 1997. "Justifiability of Bayesian Implementation in Oligopolistic Markets," MPRA Paper 4459, University Library of Munich, Germany.
    • Handle: RePEc:pra:mprapa:4459
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    File URL: https://mpra.ub.uni-muenchen.de/4459/1/MPRA_paper_4459.pdf
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    References listed on IDEAS

    as
    1. Palfrey, Thomas R & Srivastava, Sanjay, 1989. "Implementation with Incomplete Information in Exchange Economies," Econometrica, Econometric Society, vol. 57(1), pages 115-134, January.
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    6. Laffont, Jean-Jacques, 1994. "The New Economics of Regulation Ten Years After," Econometrica, Econometric Society, vol. 62(3), pages 507-537, May.
    7. Koray, Semih & Sertel, Murat R., 1990. "Pretend-but-perform regulation and limit pricing," European Journal of Political Economy, Elsevier, vol. 6(4), pages 451-472.
    8. Harsanyi, John C, 1995. "Games with Incomplete Information," American Economic Review, American Economic Association, vol. 85(3), pages 291-303, June.
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    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    Bayesian Implementation; Nash Implementation; Asymmetric Information; Oligopoly; Regulation;
    All these keywords.

    JEL classification:

    • D82 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Asymmetric and Private Information; Mechanism Design
    • D70 - Microeconomics - - Analysis of Collective Decision-Making - - - General
    • L50 - Industrial Organization - - Regulation and Industrial Policy - - - General

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