IDEAS home Printed from https://ideas.repec.org/a/bpj/bejtec/v19y2019i1p7n7.html
   My bibliography  Save this article

Irrelevance of the Strategic Variable in the Case of Relative Performance Maximization

Author

Listed:
  • Philipowski Robert

    (Debeka Lebensversicherungsverein a. G., 56058Koblenz, Germany)

Abstract

We study games with two possibilities for the strategic variable and find that contrary to the Nash equilibrium the evolutionarily stable equilibrium – provided it uniquely exists – does not depend on which possibility is chosen. Our result generalizes recent findings of Satoh, Tanaka and Wagener who studied this issue in various special cases.

Suggested Citation

  • Philipowski Robert, 2019. "Irrelevance of the Strategic Variable in the Case of Relative Performance Maximization," The B.E. Journal of Theoretical Economics, De Gruyter, vol. 19(1), pages 1-7, January.
    • Handle: RePEc:bpj:bejtec:v:19:y:2019:i:1:p:7:n:7
    DOI: 10.1515/bejte-2017-0012
    as

    Download full text from publisher

    File URL: https://doi.org/10.1515/bejte-2017-0012
    Download Restriction: For access to full text, subscription to the journal or payment for the individual article is required.
    File URL: https://libkey.io/10.1515/bejte-2017-0012?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.

    References listed on IDEAS

    as
    1. Satoh, Atsuhiro & Tanaka, Yasuhito, 2015. "Relative profit maximization and the choice of strategic variables in duopoly," MPRA Paper 63000, University Library of Munich, Germany.
    2. Andreas Wagener, 2013. "Tax Competition, Relative Performance, And Policy Imitation," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 54, pages 1251-1264, November.
    3. Carlos Alós-Ferrer & Ana Ania, 2005. "The evolutionary stability of perfectly competitive behavior," Economic Theory, Springer;Society for the Advancement of Economic Theory (SAET), vol. 26(3), pages 497-516, October.
    4. Yasuhito Tanaka, 2013. "Irrelevance of the choice of strategic variables in duopoly under relative profit maximization," Economics and Business Letters, Oviedo University Press, vol. 2(2), pages 75-83.
    5. George R. Zodrow & Peter Mieszkowski, 2019. "Pigou, Tiebout, Property Taxation, and the Underprovision of Local Public Goods," World Scientific Book Chapters, in: George R Zodrow (ed.), TAXATION IN THEORY AND PRACTICE Selected Essays of George R. Zodrow, chapter 17, pages 525-542, World Scientific Publishing Co. Pte. Ltd..
    6. Yasuhito Tanaka, 2013. "Equivalance of Cournot and Bertrand equilibria in differentiated duopoly under relative profit maximization with linear demand," Economics Bulletin, AccessEcon, vol. 33(2), pages 1479-1486.
    7. Satoh, Atsuhiro & Tanaka, Yasuhito, 2014. "Relative profit maximization in asymmetric oligopoly: Cournot and Bertrand equilibria," MPRA Paper 55883, University Library of Munich, Germany.
    8. Yasuhito Tanaka, 1999. "Long run equilibria in an asymmetric oligopoly," Economic Theory, Springer;Society for the Advancement of Economic Theory (SAET), vol. 14(3), pages 705-715.
    9. Atsuhiro Satoh & Yasuhito Tanaka, 2014. "Relative profit maximization and equivalence of Cournot and Bertrand equilibria in asymmetric duopoly," Economics Bulletin, AccessEcon, vol. 34(2), pages 819-827.
    10. Andreas Wagener, 2016. "Evolutionary Stability in Fiscal Competition," CESifo Working Paper Series 5791, CESifo.
    11. Tanaka, Yasuhito, 2000. "Stochastically stable states in an oligopoly with differentiated goods: equivalence of price and quantity strategies," Journal of Mathematical Economics, Elsevier, vol. 34(2), pages 235-253, October.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Satoh, Atsuhiro & Tanaka, Yasuhito, 2017. "Sion's minimax theorem and Nash equilibrium of symmetric multi-person zero-sum game," MPRA Paper 82148, University Library of Munich, Germany.
    2. Atsuhiro Satoh & Yasuhito Tanaka, 2020. "Sion's minimax theorem and Nash equilibrium of symmetric three-players zero-sum game," International Journal of Mathematics in Operational Research, Inderscience Enterprises Ltd, vol. 16(2), pages 279-289.
    3. Satoh, Atsuhiro & Tanaka, Yasuhito, 2016. "Maximin and minimax strategies in symmetric oligopoly: Cournot and Bertrand," MPRA Paper 75837, University Library of Munich, Germany.
    4. Atsuhiro Satoh & Yasuhito Tanaka, 2014. "Relative Profit Maximization in Duopoly: Difference or Ratio," International Journal of Business and Economics, School of Management Development, Feng Chia University, Taichung, Taiwan, vol. 13(2), pages 127-141, December.
    5. Atsuhiro Satoh & Yasuhito Tanaka, 2014. "Free Entry Oligopoly, Cournot, Bertrand and Relative Profit Maximization," International Journal of Business and Economics, School of Management Development, Feng Chia University, Taichung, Taiwan, vol. 13(2), pages 143-155, December.
    6. Li, Hui & Zhou, Wei & Elsadany, A. A & Chu, Tong, 2021. "Stability, multi-stability and instability in Cournot duopoly game with knowledge spillover effects and relative profit maximization," Chaos, Solitons & Fractals, Elsevier, vol. 146(C).
    7. Masahiko Hattori & Yasuhito Tanaka, 2014. "Incentive for adoption of new technology in duopoly under absolute and relative profit maximization," Economics Bulletin, AccessEcon, vol. 34(3), pages 2051-2059.
    8. Tanaka, Yasuhito & Satoh, Atsuhiro, 2016. "Maximin and minimax strategies in asymmetric duopoly: Cournot and Bertrand," MPRA Paper 73925, University Library of Munich, Germany.
    9. Masahiko Hattori & Atsuhiro Satoh & Yasuhito Tanaka, 2018. "Minimax theorem and Nash equilibrium of symmetric multi-players zero-sum game with two strategic variables," Papers 1806.07203, arXiv.org.
    10. Satoh, Atsuhiro & Tanaka, Yasuhito, 2016. "Symmetric multi-person zero-sum game with two sets of strategic variables," MPRA Paper 75838, University Library of Munich, Germany.
    11. Andreas Wagener, 2016. "Evolutionary Stability in Fiscal Competition," CESifo Working Paper Series 5791, CESifo.
    12. Hattori, Masahiko & Satoh, Atsuhiro & Tanaka, Yasuhito, 2018. "Minimax theorem and Nash equilibrium of symmetric three-players zero-sum game with two strategic variables," MPRA Paper 85503, University Library of Munich, Germany.
    13. Atsuhiro Satoh & Yasuhito Tanaka, 2018. "On the relation between Sion's minimax theorem and existence of Nash equilibrium in asymmetric multi-players zero-sum game with only one alien," Papers 1806.07253, arXiv.org.
    14. Satoh, Atsuhiro & Tanaka, Yasuhito, 2018. "The equivalence of mini-max theorem and existence of Nash equilibrium in asymmetric three-players zero-sum game with two groups," MPRA Paper 87249, University Library of Munich, Germany.
    15. Atsuhiro Satoh & Yasuhito Tanaka, 2019. "Two Person Zero-Sum Game with Two Sets of Strategic Variables," International Game Theory Review (IGTR), World Scientific Publishing Co. Pte. Ltd., vol. 21(03), pages 1-15, September.
    16. Atsuhiro Satoh & Yasuhito Tanaka, 2018. "Maximin and Minimax Strategies in Two-Players Game with Two Strategic Variables," International Game Theory Review (IGTR), World Scientific Publishing Co. Pte. Ltd., vol. 20(01), pages 1-13, March.
    17. Atsuhiro Satoh & Yasuhito Tanaka, 2018. "Nash equilibrium of partially asymmetric three-players zero-sum game with two strategic variables," Papers 1809.02465, arXiv.org.
    18. Ania, Ana B., 2008. "Evolutionary stability and Nash equilibrium in finite populations, with an application to price competition," Journal of Economic Behavior & Organization, Elsevier, vol. 65(3-4), pages 472-488, March.
    19. Leininger, Wolfgang & Moghadam, Hamed M., 2014. "Evolutionary Stability in Asymmetric Oligopoly. A Non-Walrasian Result," Ruhr Economic Papers 497, RWI - Leibniz-Institut für Wirtschaftsforschung, Ruhr-University Bochum, TU Dortmund University, University of Duisburg-Essen.
    20. Satoh, Atsuhiro & Tanaka, Yasuhito, 2016. "Choice of Strategic Variables by Relative Profit Maximizing Firms in Oligopoly," Economic Review, Hitotsubashi University, vol. 67(1), pages 17-25, January.

    More about this item

    Keywords

    games with two possibilities for the strategic variable; relative performance; evolutionarily stable strategy;
    All these keywords.

    JEL classification:

    • C72 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Noncooperative Games

    Statistics

    Access and download statistics

    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:bpj:bejtec:v:19:y:2019:i:1:p:7:n:7. 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.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with 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: Peter Golla (email available below). General contact details of provider: https://www.degruyter.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.