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Networks of Collaboration in Multi-market Oligopolies

Author

Listed:
  • Pascal Billand

    (GATE Lyon Saint-Étienne - Groupe d'Analyse et de Théorie Economique Lyon - Saint-Etienne - ENS de Lyon - École normale supérieure de Lyon - UL2 - Université Lumière - Lyon 2 - UCBL - Université Claude Bernard Lyon 1 - Université de Lyon - UJM - Université Jean Monnet - Saint-Étienne - CNRS - Centre National de la Recherche Scientifique)

  • Christophe Bravard

    (GATE Lyon Saint-Étienne - Groupe d'Analyse et de Théorie Economique Lyon - Saint-Etienne - ENS de Lyon - École normale supérieure de Lyon - UL2 - Université Lumière - Lyon 2 - UCBL - Université Claude Bernard Lyon 1 - Université de Lyon - UJM - Université Jean Monnet - Saint-Étienne - CNRS - Centre National de la Recherche Scientifique)

  • Sudipta Sarangi

    (Department of Economics, Louisiana State University - LSU - Louisiana State University)

  • Subhadip Chakrabarti

    (QUB - Queen's University [Belfast])

Abstract

The result that firms competing in a Cournot oligopoly with pairwise collaboration form a complete network under zero or negligible link formation costs provided by Goyal and Joshi (2003) no longer hold in multi-market oligopolies. Link formation in one market affects a firm’s profitability in another market in a possibly negative way resulting in the fact that it is no longer always profitable in an unambiguous manner. With non-negative link formation costs, the stable networks have a dominant group architecture and efficient networks are charecterized by at most one non-singleton component with a geodesic distance between players that is less than three.
(This abstract was borrowed from another version of this item.)

Suggested Citation

  • Pascal Billand & Christophe Bravard & Sudipta Sarangi & Subhadip Chakrabarti, 2011. "Networks of Collaboration in Multi-market Oligopolies," Post-Print halshs-00590317, HAL.
    • Handle: RePEc:hal:journl:halshs-00590317
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    References listed on IDEAS

    as
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    2. repec:hal:journl:halshs-01098762 is not listed on IDEAS

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    More about this item

    Keywords

    Game theory; Oligopolies; Networks;
    All these keywords.

    JEL classification:

    • L13 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Oligopoly and Other Imperfect Markets
    • L20 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - General
    • C70 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - General

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