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Comparative Statics For Market Games: The Strong Concavity Case

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  • Luis Corchón

    (Universidad de Alicante)

Abstract

In this paper we study the effects of a change in some exogenous variable (the number of players or a parameter in the payoff functions) on the strategies played and payoffs obtained in a Nash Equilibrium in the framework of a Market Game (a generalization of the Cournot model). We assume a strong concavity condition which implies that the best reply function of any player is decreasing on sum of the strategies of the remaining players (i.e. strategic substitution). Our results generalize and unify those known in the Cournot model.

Suggested Citation

  • Luis Corchón, 1993. "Comparative Statics For Market Games: The Strong Concavity Case," Working Papers. Serie AD 1993-08, Instituto Valenciano de Investigaciones Económicas, S.A. (Ivie).
    • Handle: RePEc:ivi:wpasad:1993-08
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    File URL: http://www.ivie.es/downloads/docs/wpasad/wpasad-1993-08.pdf
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