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An imperfect competition on scale-free networks

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  • Konno, Tomohiko

Abstract

We study an imperfect quantity competition on networks that represent rivalry relationships among firms. We show that the more heterogeneous the underlying network is, the more the output and the price are. The output and the price on scale-free networks are counter-intuitively the same as those in the monopoly regardless of the number of rival firms. We also show that any inverse demand function represented by a network has the corresponding utility function, which justifies the inverse demand function.

Suggested Citation

  • Konno, Tomohiko, 2013. "An imperfect competition on scale-free networks," Physica A: Statistical Mechanics and its Applications, Elsevier, vol. 392(21), pages 5453-5460.
  • Handle: RePEc:eee:phsmap:v:392:y:2013:i:21:p:5453-5460
    DOI: 10.1016/j.physa.2013.06.017
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    References listed on IDEAS

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    Cited by:

    1. Dong, Gaogao & Tian, Lixin & Du, Ruijin & Fu, Min & Stanley, H. Eugene, 2014. "Analysis of percolation behaviors of clustered networks with partial support–dependence relations," Physica A: Statistical Mechanics and its Applications, Elsevier, vol. 394(C), pages 370-378.
    2. Konno, Tomohiko, 2016. "Network effect of knowledge spillover: Scale-free networks stimulate R&D activities and accelerate economic growth," Physica A: Statistical Mechanics and its Applications, Elsevier, vol. 458(C), pages 157-167.
    3. Konno, Tomohiko, 2016. "Knowledge spillover processes as complex networks," Physica A: Statistical Mechanics and its Applications, Elsevier, vol. 462(C), pages 1207-1214.

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