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Endogenous interval games in oligopolies and the cores

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  • Aymeric Lardon

    (University of Nice-Sophia Antipolis)

Abstract

In this article we study interval games in oligopolies following the $$\gamma $$ γ -approach. First, we analyze their non-cooperative foundation and show that each coalition is associated with an endogenous real interval. Second, the Hurwicz criterion turns out to be a key concept to provide a necessary and sufficient condition for the non-emptiness of each of the induced core solution concepts: the interval and the standard $$\gamma $$ γ -cores. The first condition permits to ascertain that even for linear and symmetric industries the interval $$\gamma $$ γ -core is empty. Moreover, by means of the approximation technique of quadratic Bézier curves we prove that the second condition always holds, hence the standard $$\gamma $$ γ -core is non-empty, under natural properties of profit and cost functions.

Suggested Citation

  • Aymeric Lardon, 2017. "Endogenous interval games in oligopolies and the cores," Annals of Operations Research, Springer, vol. 248(1), pages 345-363, January.
  • Handle: RePEc:spr:annopr:v:248:y:2017:i:1:d:10.1007_s10479-016-2211-7
    DOI: 10.1007/s10479-016-2211-7
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    Cited by:

    1. Giorgos Stamatopoulos, 2020. "On the $$\gamma $$γ-core of asymmetric aggregative games," Theory and Decision, Springer, vol. 88(4), pages 493-504, May.
    2. Lina Mallozzi & Juan Vidal-Puga, 2021. "Uncertainty in cooperative interval games: how Hurwicz criterion compatibility leads to egalitarianism," Annals of Operations Research, Springer, vol. 301(1), pages 143-159, June.
    3. Stamatopoulos, Giorgos, 2018. "On the gamma-core of asymmetric aggregative games," MPRA Paper 88722, University Library of Munich, Germany.
    4. Aymeric Lardon, 2020. "Convexity of Bertrand oligopoly TU-games with differentiated products," Annals of Operations Research, Springer, vol. 287(1), pages 285-302, April.

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    More about this item

    Keywords

    Interval game; Oligopoly; $$gamma $$ γ -Cores; Hurwicz criterion; Quadratic Bézier curve;
    All these keywords.

    JEL classification:

    • C71 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Cooperative Games
    • D43 - Microeconomics - - Market Structure, Pricing, and Design - - - Oligopoly and Other Forms of Market Imperfection

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