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Joint Production Games with Mixed Sharing Rules


Author Info

  • Richard Cornes

    (Nottingham University)

  • Roger Hartley

    (Keele University)


We study Nash equilibria of joint production games under a mixed output sharing rule in which part of the output (the mixing parameter) is shared in proportion to inputs and the rest according to exogenously determined shares. This rule includes proportional sharing and equal sharing as special cases. We show that this game has a unique equilibrium and discuss comparative statics. When the game is large, players unanimously prefer the same value of the mixing parameter: the equilibrium value of the elasticity of production. For this value, equilibrium input and output are fully efficient. Our approach exploits the fact that payoffs in the joint production game are a function only of a player's input and the aggregate input and has indepen-dent interest as it readily extends to other "aggregative games".

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Bibliographic Info

Paper provided by EconWPA in its series Game Theory and Information with number 0211003.

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Length: 39 pages
Date of creation: 05 Nov 2002
Date of revision:
Handle: RePEc:wpa:wuwpga:0211003

Note: Type of Document - pdf; prepared on pc; pages: 39
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Keywords: Production externalities; non-cooperative games;

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Cited by:
  1. Richard Cornes & Roger Hartley, 2009. "Fully Aggregative Games," ANU Working Papers in Economics and Econometrics 2009-505, Australian National University, College of Business and Economics, School of Economics.
  2. Dickson, Alex & Hartley, Roger, 2008. "The strategic Marshallian cross," Games and Economic Behavior, Elsevier, vol. 64(2), pages 514-532, November.


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