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Mixed motives in a Cournot game

Author

Listed:
  • Thomas Riechmann

    (University of Magdeburg, FEMM)

Abstract

The paper analyzes a Cournot model with two types of firms: Maximizers of profits and maximizers of relative payoffs. It is shown that the equilibrium is located somewhere between the regular Cournot-Nash equilibrium and the competitive Walrasian (or Bertrand-) equilibrium.

Suggested Citation

  • Thomas Riechmann, 2006. "Mixed motives in a Cournot game," Economics Bulletin, AccessEcon, vol. 4(29), pages 1-8.
    • Handle: RePEc:ebl:ecbull:eb-06d40004
    as

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    File URL: http://www.accessecon.com/pubs/EB/2006/Volume4/EB-06D40004A.pdf
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    References listed on IDEAS

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    1. Ernst Fehr & Klaus M. Schmidt, 1999. "A Theory of Fairness, Competition, and Cooperation," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 114(3), pages 817-868.
    2. Fudenberg, Drew & Levine, David, 1998. "Learning in games," European Economic Review, Elsevier, vol. 42(3-5), pages 631-639, May.
    3. Shapiro, Carl, 1989. "Theories of oligopoly behavior," Handbook of Industrial Organization, in: R. Schmalensee & R. Willig (ed.), Handbook of Industrial Organization, edition 1, volume 1, chapter 6, pages 329-414, Elsevier.
    4. Vriend, Nicolaas J., 2000. "An illustration of the essential difference between individual and social learning, and its consequences for computational analyses," Journal of Economic Dynamics and Control, Elsevier, vol. 24(1), pages 1-19, January.
    5. Fernando Vega-Redondo, 1997. "The Evolution of Walrasian Behavior," Econometrica, Econometric Society, vol. 65(2), pages 375-384, March.
    6. Axel Ockenfels & Gary E. Bolton, 2000. "ERC: A Theory of Equity, Reciprocity, and Competition," American Economic Review, American Economic Association, vol. 90(1), pages 166-193, March.
    7. R. Schmalensee & R. Willig (ed.), 1989. "Handbook of Industrial Organization," Handbook of Industrial Organization, Elsevier, edition 1, volume 2, number 2.
    8. Drew Fudenberg & David K. Levine, 1998. "The Theory of Learning in Games," MIT Press Books, The MIT Press, edition 1, volume 1, number 0262061945, April.
    9. Thomas Riechmann, 2006. "Cournot or Walras? Long-Run Results in Oligopoly Games," Journal of Institutional and Theoretical Economics (JITE), Mohr Siebeck, Tübingen, vol. 162(4), pages 702-720, December.
    10. R. Schmalensee & R. Willig (ed.), 1989. "Handbook of Industrial Organization," Handbook of Industrial Organization, Elsevier, edition 1, volume 1, number 1.
    Full references (including those not matched with items on IDEAS)

    Citations

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    Cited by:

    1. Vallée, Thomas & YIldIzoglu, Murat, 2009. "Convergence in the finite Cournot oligopoly with social and individual learning," Journal of Economic Behavior & Organization, Elsevier, vol. 72(2), pages 670-690, November.
    2. repec:ebl:ecbull:v:12:y:2006:i:14:p:1-7 is not listed on IDEAS
    3. Kopel, Michael & Lamantia, Fabio & Szidarovszky, Ferenc, 2014. "Evolutionary competition in a mixed market with socially concerned firms," Journal of Economic Dynamics and Control, Elsevier, vol. 48(C), pages 394-409.
    4. Kangsik Choi, 2006. "Mixed Motives of Simultaneous-move Games in a Mixed Duopoly," Economics Bulletin, AccessEcon, vol. 12(14), pages 1-7.
    5. Li, Yan & Chen, Yefen & Shou, Biying & Zhao, Xiaobo, 2019. "Oligopolistic quantity competition with bounded rationality and social comparison," International Journal of Production Economics, Elsevier, vol. 211(C), pages 180-196.
    6. Ceccantoni, Giulia & Tarola, Ornella & Zanaj, Skerdilajda, 2018. "Green Consumption and Relative Preferences in a Vertically Differentiated International Oligopoly," Ecological Economics, Elsevier, vol. 149(C), pages 129-139.
    7. Kangsik Choi & Yuanzhu Lu, 2009. "A Model Of Endogenous Payoff Motives And Endogenous Timing In A Mixed Duopoly," Australian Economic Papers, Wiley Blackwell, vol. 48(3), pages 203-223, September.
    8. Alessandra Chirco & Caterina Colombo & Marcella Scrimitore, 2013. "Quantity competition, endogenous motives and behavioral heterogeneity," Theory and Decision, Springer, vol. 74(1), pages 55-74, January.
    9. Ornella Tarola & Skerdilajda Zanaj, 2019. "Social division in the market: conspicuous consumption with nationalist feelings," DEM Discussion Paper Series 19-12, Department of Economics at the University of Luxembourg.
    10. Huang, Weihong & Zhang, Yang, 2018. "Technological gap and heterogeneous oligopoly," The Quarterly Review of Economics and Finance, Elsevier, vol. 67(C), pages 1-7.

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    More about this item

    Keywords

    Bertrand Equilibrium;

    JEL classification:

    • D4 - Microeconomics - - Market Structure, Pricing, and Design

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