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A note on networks collaboration in multi-market oligopolies

Author

Listed:
  • Billand, P.
  • Bravard, C.
  • Chakrabarti, S.
  • Sarangi, S.

Abstract

In this note, we extend the Goyal and Joshi's model of network of collaboration in oligopoly to multi-market situations. We examine the incentive of firms to form links and the architectures of the resulting equilibrium networks of this setting. We also present some results on efficient networks.

Suggested Citation

  • Billand, P. & Bravard, C. & Chakrabarti, S. & Sarangi, S., 2013. "A note on networks collaboration in multi-market oligopolies," Working Papers 2013-05, Grenoble Applied Economics Laboratory (GAEL).
    • Handle: RePEc:gbl:wpaper:2013-05
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    References listed on IDEAS

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    2. Jackson, Matthew O. & Wolinsky, Asher, 1996. "A Strategic Model of Social and Economic Networks," Journal of Economic Theory, Elsevier, vol. 71(1), pages 44-74, October.
    3. Goyal, Sanjeev & Joshi, Sumit, 2003. "Networks of collaboration in oligopoly," Games and Economic Behavior, Elsevier, vol. 43(1), pages 57-85, April.
    4. Bulow, Jeremy I & Geanakoplos, John D & Klemperer, Paul D, 1985. "Multimarket Oligopoly: Strategic Substitutes and Complements," Journal of Political Economy, University of Chicago Press, vol. 93(3), pages 488-511, June.
    5. Mohamed Belhaj & Sebastian Bervoets & Frédéric Deroïan, 2013. "Network Design under Local Complementarities," Working Papers halshs-00796487, HAL.
    6. Bastian Westbrock, 2010. "Natural concentration in industrial research collaboration," RAND Journal of Economics, RAND Corporation, vol. 41(2), pages 351-371, June.
    7. Francis Bloch, 1995. "Endogenous Structures of Association in Oligopolies," RAND Journal of Economics, The RAND Corporation, vol. 26(3), pages 537-556, Autumn.
    8. Nirvikar Singh & Xavier Vives, 1984. "Price and Quantity Competition in a Differentiated Duopoly," RAND Journal of Economics, The RAND Corporation, vol. 15(4), pages 546-554, Winter.
    9. Sanjeev Goyal & Sumit Joshi, 2006. "Unequal connections," International Journal of Game Theory, Springer;Game Theory Society, vol. 34(3), pages 319-349, October.
    10. B. Douglas Bernheim & Michael D. Whinston, 1990. "Multimarket Contact and Collusive Behavior," RAND Journal of Economics, The RAND Corporation, vol. 21(1), pages 1-26, Spring.
    Full references (including those not matched with items on IDEAS)

    Citations

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    Cited by:

    1. Panebianco, Fabrizio & Verdier, Thierry & Zenou, Yves, 2016. "Innovation, Pricing and Targeting in Networks," CEPR Discussion Papers 11398, C.E.P.R. Discussion Papers.
    2. Ying‐Ju Chen & Yves Zenou & Junjie Zhou, 2018. "Competitive pricing strategies in social networks," RAND Journal of Economics, RAND Corporation, vol. 49(3), pages 672-705, September.
    3. Billand, Pascal & Bravard, Christophe & Durieu, Jacques & Sarangi, Sudipta, 2015. "Efficient networks for a class of games with global spillovers," Journal of Mathematical Economics, Elsevier, vol. 61(C), pages 203-210.
    4. Ushchev, Philip & Zenou, Yves, 2018. "Price competition in product variety networks," Games and Economic Behavior, Elsevier, vol. 110(C), pages 226-247.
    5. Zhao, LiuWei & Du, Jianguo & Wang, QiWei, 2019. "Nonlinear analysis and chaos control of the complex dynamics of multi-market Cournot game with bounded rationality," Mathematics and Computers in Simulation (MATCOM), Elsevier, vol. 162(C), pages 45-57.
    6. Ushchev, Philip & Zenou, Yves, 2018. "Price competition in product variety networks," Games and Economic Behavior, Elsevier, vol. 110(C), pages 226-247.
    7. Filipp Ushchev & Yves Zenou, 2018. "Price competition in product variety networks," ULB Institutional Repository 2013/387738, ULB -- Universite Libre de Bruxelles.
    8. Battaggion, Maria Rosa & Cerasi, Vittoria, 2020. "Strategic interlocking directorates," Journal of Economic Behavior & Organization, Elsevier, vol. 178(C), pages 85-101.
    9. Subhadip Chakrabarti & Robert P. Gilles & Emiliya Lazarova, 2018. "Partial cooperation in strategic multi-sided decision situations," Theory and Decision, Springer, vol. 85(3), pages 455-478, October.

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    More about this item

    Keywords

    R&D COLLABORATION; NETWORK FORMATION; MULTI-MARKET OLIGOPOLIES;
    All these keywords.

    JEL classification:

    • C70 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - General
    • L13 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Oligopoly and Other Imperfect Markets
    • L20 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - General
    • D85 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Network Formation

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