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Convergence of strategic behavior to price taking

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  • Koutsougeras, Leonidas C.

Abstract

We address the following issue: what can be said about the degree of competition, in a set of markets with a large number of participants, when no information on the distribution of individual characteristics is available? Our main result is that the proportion of individuals whose strategic behavior differs substantially from price taking, converges to zero as the number of market participants becomes large, regardless of the distribution of characteristics.

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  • Koutsougeras, Leonidas C., 2009. "Convergence of strategic behavior to price taking," Games and Economic Behavior, Elsevier, vol. 65(1), pages 234-241, January.
    • Handle: RePEc:eee:gamebe:v:65:y:2009:i:1:p:234-241
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    References listed on IDEAS

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    Cited by:

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    2. Francesca Busetto & Giulio Codognato & Sayantan Ghosal & Ludovic Julien & Simone Tonin, 2020. "Existence and optimality of Cournot–Nash equilibria in a bilateral oligopoly with atoms and an atomless part," International Journal of Game Theory, Springer;Game Theory Society, vol. 49(4), pages 933-951, December.
    3. Nikolas Tsakas & Dimitrios Xefteris & Nicholas Ziros, 2021. "Vote Trading in Power-Sharing Systems: A Laboratory Investigation," The Economic Journal, Royal Economic Society, vol. 131(636), pages 1849-1882.
    4. Leonidas C. Koutsougeras & Claudia Meo, 2018. "An asymptotic analysis of strategic behavior for exchange economies," Economic Theory, Springer;Society for the Advancement of Economic Theory (SAET), vol. 66(2), pages 301-325, August.
    5. Dmitry Levando, 2012. "A Survey Of Strategic Market Games," Economic Annals, Faculty of Economics and Business, University of Belgrade, vol. 57(194), pages 63-106, July - Se.

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