IDEAS home Printed from https://ideas.repec.org/a/kap/theord/v98y2025i4d10.1007_s11238-024-10022-y.html
   My bibliography  Save this article

Convexity and the Shapley value of Bertrand oligopoly TU-games in $$\beta$$ β -characteristic function form

Author

Listed:
  • Dongshuang Hou

    (Northwestern Polytechnical University)

  • Aymeric Lardon

    (Université Jean Monnet)

  • Theo Driessen

    (University of Twente)

Abstract

The Bertrand oligopoly situation with Shubik’s demand functions is modeled as a cooperative transferable utility game in $$\beta$$ β -characteristic function form. To achieve this, two sequential optimization problems are solved to describe the worth of each coalition in the associated Bertrand oligopoly transferable utility game. First, we show that these games are convex, indicating strong incentives for large-scale cooperation between firms. Second, the Shapley value of these games is fully determined by applying the linearity to a decomposition that involves the difference between two convex games and two non-essential games.

Suggested Citation

  • Dongshuang Hou & Aymeric Lardon & Theo Driessen, 2025. "Convexity and the Shapley value of Bertrand oligopoly TU-games in $$\beta$$ β -characteristic function form," Theory and Decision, Springer, vol. 98(4), pages 519-536, June.
  • Handle: RePEc:kap:theord:v:98:y:2025:i:4:d:10.1007_s11238-024-10022-y
    DOI: 10.1007/s11238-024-10022-y
    as

    Download full text from publisher

    File URL: http://link.springer.com/10.1007/s11238-024-10022-y
    File Function: Abstract
    Download Restriction: Access to full text is restricted to subscribers.

    File URL: https://libkey.io/10.1007/s11238-024-10022-y?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:kap:theord:v:98:y:2025:i:4:d:10.1007_s11238-024-10022-y. See general information about how to correct material in RePEc.

    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.

    We have no bibliographic references for this item. You can help adding them by using 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 RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Sonal Shukla or Springer Nature Abstracting and Indexing (email available below). General contact details of provider: http://www.springer.com .

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

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.