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Games played in a contracting environment

  • Bhaskar, V.

We analyze normal form games where a player has to pay a price to a supplier in order to play a specific action. Our focus is on supplier competition, arising from the fact that distinct suppliers supply different players, and possibly different actions of the same player. With private contracts, where a player only observes the prices quoted by his own suppliers, the set of equilibrium distributions over player actions coincides with the set of equilibrium distributions when all actions are supplied competitively, at cost. With public contracts, the two distributions differ dramatically even in simple games.

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Article provided by Elsevier in its journal Games and Economic Behavior.

Volume (Year): 67 (2009)
Issue (Month): 2 (November)
Pages: 389-398

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Handle: RePEc:eee:gamebe:v:67:y:2009:i:2:p:389-398
Contact details of provider: Web page: http://www.elsevier.com/locate/inca/622836

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