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Oligopolistic competition as a common agency game

  • d'Aspremont, Claude
  • Dos Santos Ferreira, Rodolphe

Oligopolistic competition is analyzed in a complete information multi-principal common agency framework, where principals are firms supplying differentiated goods and the agent is a representative consumer. We first propose a canonical formulation of common agency games, and a parameterization of the set of equilibria based on the Lagrange multipliers associated with the participation and the incentive compatibility constraints of each principal. This is used to characterize the set of equilibria in the intrinsic and non-intrinsic games. The former includes the latter, as well as the standard price and quantity equilibrium outcomes. It may also include the collusive solution.

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

Volume (Year): 70 (2010)
Issue (Month): 1 (September)
Pages: 21-33

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Handle: RePEc:eee:gamebe:v:70:y:2010:i:1:p:21-33
Contact details of provider: Web page: http://www.elsevier.com/locate/inca/622836

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  1. Martimort, D., 1992. "Exclusive Dealing, Common Agency and Multiprincipals Incentive Thoery," Papers 92.278, Toulouse - GREMAQ.
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  9. Claudio Mezzetti, 1997. "Common Agency with Horizontally Differentiated Principals," RAND Journal of Economics, The RAND Corporation, vol. 28(2), pages 323-345, Summer.
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  11. Martimort David & Stole Lars, 2003. "Contractual Externalities and Common Agency Equilibria," The B.E. Journal of Theoretical Economics, De Gruyter, vol. 3(1), pages 1-40, July.
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  15. B. Douglas Bernheim & Michael D. Whinston, 1985. "Common Marketing Agency as a Device for Facilitating Collusion," RAND Journal of Economics, The RAND Corporation, vol. 16(2), pages 269-281, Summer.
  16. Claude d'Aspremont & Rodolphe Dos Santos Ferreira & Louis-André Gérard-Varet, 2007. "Competition For Market Share Or For Market Size: Oligopolistic Equilibria With Varying Competitive Toughness," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 48(3), pages 761-784, 08.
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