IDEAS home Printed from
MyIDEAS: Log in (now much improved!) to save this article

A Simulation Model of the Price Bargaining Rules in Vertical Relationships

Listed author(s):
  • J. Duvallet


    (Laboratory GILCO, ENSGI-INPG, 46, avenue Felix Viallet, 38031 Grenoble Cedex 1, France)

  • A. Garapin


    (Laboratory IREPD, UPMF, BP 47, 38040 Grenoble Cedex 9, France)

  • M. Hollard


    (Laboratory IREPD, UPMF, BP 47, 38040 Grenoble Cedex 9, France)

  • D. Llerena


    (Laboratory IREPD, UPMF, BP 47, 38040 Grenoble Cedex 9, France)

This paper analyzes the dynamics of the price and quantity bargaining between four agents, in a current industrial structure, with a special attention to the price bargaining. The structure combines a bilateral monopoly in a market for inputs, and a duopoly in a final market. After a simplified presentation of a model which proposes equilibrium solutions to the bargaining, we present the protocol and the results of an experiment whose objective is twofold. The first one is to test the assumptions of the model. The second one is to identify behavioral models and bargaining rules for a work of simulation. The experimental results do not confirm the solutions of the theoretical model, which predicted a Nash solution for the price bargaining, and used the cournot conjecture in the quantity bargaining. A detailed analysis of the results leads to some observations useful to parameterize a simulation model. The simulation runs a systematic analysis of the dynamics of the bargaining rules in this structure.

If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.

File URL:
Download Restriction: Access to the full text of the articles in this series is restricted.

As the access to this document is restricted, you may want to look for a different version under "Related research" (further below) or search for a different version of it.

Article provided by Springer & Society for Computational Economics in its journal Computational Economics.

Volume (Year): 23 (2004)
Issue (Month): 2 (March)
Pages: 121-145

in new window

Handle: RePEc:kap:compec:v:23:y:2004:i:2:p:121-145
Contact details of provider: Web page:

Web page:

More information through EDIRC

Order Information: Web:

No references listed on IDEAS
You can help add them by filling out this form.

This item is not listed on Wikipedia, on a reading list or among the top items on IDEAS.

When requesting a correction, please mention this item's handle: RePEc:kap:compec:v:23:y:2004:i:2:p:121-145. See general information about how to correct material in RePEc.

For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Sonal Shukla)

or (Rebekah McClure)

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 references are entirely missing, you can add them using this form.

If the full references list an item that is present in RePEc, but the system did not link 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 profile, as there may be some citations waiting for confirmation.

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

This information is provided to you by IDEAS at the Research Division of the Federal Reserve Bank of St. Louis using RePEc data.