IDEAS home Printed from https://ideas.repec.org/p/ubi/deawps/95.html
   My bibliography  Save this paper

Exploiting homogeneity in games with non-homogeneous revenue functions

Author

Listed:
  • Walter Ferrarese

    (Universitat de les Illes Balears)

  • Antoni Rubí-Barceló

    (Universitat de les Illes Balears)

Abstract

We exploit the properties of homogeneous functions to characterize the symmetric pure-strategy Nash equilibria of n-player games in which each player’s revenue function is not homogeneous but it can be decomposed into the sum of homogeneous functions with different degrees of homogeneity. These fea- tures are met in a wide range of games, including contests, imperfect competition, or public good games. Our results aim to contribute an easy checklist for finding the symmetric pure-strategy Nash equilibria. We apply these results to three examples.

Suggested Citation

  • Walter Ferrarese & Antoni Rubí-Barceló, 2022. "Exploiting homogeneity in games with non-homogeneous revenue functions," DEA Working Papers 95, Universitat de les Illes Balears, Departament d'Economía Aplicada.
    • Handle: RePEc:ubi:deawps:95
    as

    Download full text from publisher

    File URL: http://www.uib.es/depart/deaweb/deawp/pdf/w95.pdf
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Szidarovszky, F & Yakowitz, S, 1977. "A New Proof of the Existence and Uniqueness of the Cournot Equilibrium," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 18(3), pages 787-789, October.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Alex Dickson & Roger Hartley, 2006. "On a foundation for Cournot equilibrium," Economics Discussion Paper Series 0638, Economics, The University of Manchester.
    2. Cherchye, Laurens & Demuynck, Thomas & De Rock, Bram, 2013. "The empirical content of Cournot competition," Journal of Economic Theory, Elsevier, vol. 148(4), pages 1552-1581.
    3. Matt Van Essen, 2013. "Regulating the Anticommons: Insights from Public‐Expenditure Theory," Southern Economic Journal, John Wiley & Sons, vol. 80(2), pages 523-539, October.
    4. Kojun Hamada & Takao Ohkawa & Makoto Okamura, 2022. "Optimal taxation in a free‐entry Cournot oligopoly: The average cost function approach," Canadian Journal of Economics/Revue canadienne d'économique, John Wiley & Sons, vol. 55(2), pages 1166-1192, May.
    5. Martimort, David & Stole, Lars, 2012. "Representing equilibrium aggregates in aggregate games with applications to common agency," Games and Economic Behavior, Elsevier, vol. 76(2), pages 753-772.
    6. Richard Cornes & Jun-ichi Itaya, 2016. "Alternative Objectives in an Oligopoly Model: An Aggregative Game Approach," CESifo Working Paper Series 6191, CESifo.
    7. Kojun Hamada & Takao Ohkawa & Makoto Okamura, 2024. "The optimal specific or ad valorem tax when the other tax is exogenously imposed in a free‐entry Cournot oligopoly market," Bulletin of Economic Research, Wiley Blackwell, vol. 76(1), pages 251-266, January.
    8. Attila Tasnádi, 2010. "Quantity-setting games with a dominant firm," Journal of Economics, Springer, vol. 99(3), pages 251-266, April.
    9. Cars H. Hommes & Marius I. Ochea & Jan Tuinstra, 2018. "Evolutionary Competition Between Adjustment Processes in Cournot Oligopoly: Instability and Complex Dynamics," Dynamic Games and Applications, Springer, vol. 8(4), pages 822-843, December.
    10. Quartieri, Federico, 2017. "Are vessel sharing agreements pro-competitive?," Economics of Transportation, Elsevier, vol. 11, pages 33-48.
    11. Jan Zouhar & Martina Zouharova, 2020. "Stackelberg versus Cournot duopoly with asymmetric costs: primary markups, entry deterrence, and a comparison of social welfare and industry profits," Economic Theory Bulletin, Springer;Society for the Advancement of Economic Theory (SAET), vol. 8(1), pages 89-96, April.
    12. Kline, J. Jude, 2000. "Research joint ventures and the cost paradox," International Journal of Industrial Organization, Elsevier, vol. 18(7), pages 1049-1065, October.
    13. Alex Dickson & Roger Hartley, 2013. "Bilateral oligopoly and quantity competition," Economic Theory, Springer;Society for the Advancement of Economic Theory (SAET), vol. 52(3), pages 979-1004, April.
    14. Veronika Grimm & Frank Riedel & Elmar G. Wolfstetter, 2000. "Implementing Efficient Market Structure," CESifo Working Paper Series 269, CESifo.
    15. Fabio Manenti & Ernesto Somma, 2008. "One-Way Compatibility, Two-Way Compatibility and Entry in Network Industries," International Journal of the Economics of Business, Taylor & Francis Journals, vol. 15(3), pages 301-322.
    16. Einy, Ezra & Haimanko, Ori & Moreno, Diego & Shitovitz, Benyamin, 2010. "On the existence of Bayesian Cournot equilibrium," Games and Economic Behavior, Elsevier, vol. 68(1), pages 77-94, January.
    17. Jonathan Kluberg & Georgia Perakis, 2012. "Generalized Quantity Competition for Multiple Products and Loss of Efficiency," Operations Research, INFORMS, vol. 60(2), pages 335-350, April.
    18. Collie, David, 1992. "International Trade and Cournot Equilibrium: Existence, Uniqueness and Comparative Statics," Bulletin of Economic Research, Wiley Blackwell, vol. 44(1), pages 55-66, January.
    19. Richard Cornes & Roger Hartley & Yuji Tamura, 2019. "Two‐Aggregate Games: Demonstration Using a Production–Appropriation Model," Scandinavian Journal of Economics, Wiley Blackwell, vol. 121(1), pages 353-378, January.
    20. Van Long, Ngo & Soubeyran, Antoine, 2000. "Existence and uniqueness of Cournot equilibrium: a contraction mapping approach," Economics Letters, Elsevier, vol. 67(3), pages 345-348, June.

    More about this item

    Keywords

    equilibrium characterization; homogeneous functions’ properties; non-homogeneous revenue function.;
    All these keywords.

    JEL classification:

    • Q58 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Environmental Economics: Government Policy
    • H23 - Public Economics - - Taxation, Subsidies, and Revenue - - - Externalities; Redistributive Effects; Environmental Taxes and Subsidies
    • D72 - Microeconomics - - Analysis of Collective Decision-Making - - - Political Processes: Rent-seeking, Lobbying, Elections, Legislatures, and Voting Behavior

    NEP fields

    This paper has been announced in the following NEP Reports:

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:ubi:deawps:95. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Xisco Oliver (email available below). General contact details of provider: https://edirc.repec.org/data/dauibes.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.