IDEAS home Printed from https://ideas.repec.org/a/gam/jmathe/v7y2018i1p10-d192633.html
   My bibliography  Save this article

Cournot-Bayesian General Equilibrium: A Radon Measure Approach

Author

Listed:
  • David Carfì

    (Department of Mathematics, University of California Riverside, Riverside, CA 92521, USA
    Current address: Department of Economics, University of Messina, Via dei Verdi 91, 98122 Messina, Italy.
    These authors contributed equally to this work.)

  • Alessia Donato

    (Department of Economics, University of Messina, 98122 Messina, Italy
    These authors contributed equally to this work.)

Abstract

In this paper, we consider a Cournot duopoly, in which any firm does not know the marginal costs of production of the other player, as a Bayesian game. In our game, the marginal costs depend on two infinite continuous sets of states of the world. We shall study, before the general case, an intermediate case in which only one player, the second one, shows infinitely many types. Then, we shall generalize to the case in which both players show infinitely many types depending on the marginal costs, where the marginal costs are given by the nature and each actual marginal cost is known only by the respective player. We find, in both cases, the general Nash equilibrium.

Suggested Citation

  • David Carfì & Alessia Donato, 2018. "Cournot-Bayesian General Equilibrium: A Radon Measure Approach," Mathematics, MDPI, vol. 7(1), pages 1-19, December.
    • Handle: RePEc:gam:jmathe:v:7:y:2018:i:1:p:10-:d:192633
    as

    Download full text from publisher

    File URL: https://www.mdpi.com/2227-7390/7/1/10/pdf
    Download Restriction: no
    File URL: https://www.mdpi.com/2227-7390/7/1/10/
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Carfí, David & Musolino, Francesco, 2014. "Speculative and hedging interaction model in oil and U.S. dollar markets with financial transaction taxes," Economic Modelling, Elsevier, vol. 37(C), pages 306-319.
    2. Fudenberg, Drew, 1986. "Noncooperative Game Theory for Industrial Organization: An Introduction and Overview," Department of Economics, Working Paper Series qt9j39n20f, Department of Economics, Institute for Business and Economic Research, UC Berkeley.
    3. Carfì, David & Perrone, Emanuele, 2012. "Game complete analysis of symmetric Cournot duopoly," MPRA Paper 35930, University Library of Munich, Germany.
    4. Carfì, David & Schilirò, Daniele, 2012. "A coopetitive model for the green economy," Economic Modelling, Elsevier, vol. 29(4), pages 1215-1219.
    5. Fudenberg, Drew & Tirole, Jean, 1989. "Noncooperative game theory for industrial organization: An introduction and overview," Handbook of Industrial Organization, in: R. Schmalensee & R. Willig (ed.), Handbook of Industrial Organization, edition 1, volume 1, chapter 5, pages 259-327, Elsevier.
    6. David Carfì & Emanuele Perrone, 2013. "Asymmetric Cournot Duopoly: A Game Complete Analysis," Journal of Reviews on Global Economics, Lifescience Global, vol. 2, pages 194-202.
    7. S. S. Askar, 2013. "The Impact of Cost Uncertainty on Cournot Duopoly Game with Concave Demand Function," Journal of Applied Mathematics, Hindawi, vol. 2013, pages 1-5, November.
    8. Vives, Xavier, 1984. "Duopoly information equilibrium: Cournot and bertrand," Journal of Economic Theory, Elsevier, vol. 34(1), pages 71-94, October.
    9. John C. Harsanyi, 1967. "Games with Incomplete Information Played by "Bayesian" Players, I-III Part I. The Basic Model," Management Science, INFORMS, vol. 14(3), pages 159-182, November.
    10. Carl Shapiro, 1989. "The Theory of Business Strategy," RAND Journal of Economics, The RAND Corporation, vol. 20(1), pages 125-137, Spring.
    11. Carfì, David & Schilirò, Daniele, 2012. "Global green economy and environmental sustainability: a coopetitive model," MPRA Paper 37018, University Library of Munich, Germany.
    12. Carfì, David & Musolino, Francesco, 2012. "Game theory and speculation on government bonds," Economic Modelling, Elsevier, vol. 29(6), pages 2417-2426.
    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. Carfì, David & Donato, Alessia & Schilirò, Daniele, 2018. "Sustainability of global feeding.Coopetitive interaction among vegan and non-vegan food firms," MPRA Paper 88400, University Library of Munich, Germany.
    2. Carfì, David & Donato, Alessia & Schilirò, Daniele, 2018. "An environmentally sustainable global economy. A coopetitive model," MPRA Paper 86718, University Library of Munich, Germany.
    3. David, Carfì & Daniele, SCHILIRO', 2014. "Improving competitiveness and trade balance of Greek economy: a coopetitive strategy model," MPRA Paper 76970, University Library of Munich, Germany.
    4. Sexton, Richard J., 1991. "Game Theory: A Review With Applications To Vertical Control In Agricultural Markets," Working Papers 225865, University of California, Davis, Department of Agricultural and Resource Economics.
    5. Alessia Donato & David Carfì & Beatrice Blandina, 2018. "Coopetitive Games for Management of Marine Transportation Activity: A Study Case," Mathematics, MDPI, vol. 6(12), pages 1-17, December.
    6. David CARFI & Caterina FICI, 2012. "The Government-Taxpayer Game," Theoretical and Practical Research in the Economic Fields, ASERS Publishing, vol. 3(1), pages 13-25.
    7. Fluet, Claude & Garella, Paolo G., 2002. "Advertising and prices as signals of quality in a regime of price rivalry," International Journal of Industrial Organization, Elsevier, vol. 20(7), pages 907-930, September.
    8. Pierre-Pascal Gendron, 1996. "Corporation Tax Asymmetries: An Oligopolistic Supergame Analysis," Working Papers ecpap-96-04, University of Toronto, Department of Economics.
    9. Sverre Grepperud, 2005. "Medical Errors: Mandatory Reporting, Voluntary Reporting, or Both?," European Journal of Law and Economics, Springer, vol. 20(1), pages 99-112, July.
    10. Luigi Guiso & Tullio Jappelli, 2005. "Awareness and Stock Market Participation," Review of Finance, European Finance Association, vol. 9(4), pages 537-567.
    11. Gilles Duranton, 1997. "La nouvelle économie géographique : agglomération et dispersion," Économie et Prévision, Programme National Persée, vol. 131(5), pages 1-24.
    12. Yue, Xiaohang & Liu, John, 2006. "Demand forecast sharing in a dual-channel supply chain," European Journal of Operational Research, Elsevier, vol. 174(1), pages 646-667, October.
    13. Lindbeck, Assar & Snower, Dennis J., 2003. "The Firm as a Pool of Factor Complementarities," IZA Discussion Papers 882, Institute of Labor Economics (IZA).
    14. Dan Anderberg & Carlo Perroni, "undated". "Renegotiation of Social Contracts by Majority Rule," EPRU Working Paper Series 00-15, Economic Policy Research Unit (EPRU), University of Copenhagen. Department of Economics.
    15. James E. Alt & Barry Eichengreen, 1989. "Parallel And Overlapping Games: Theory And An Application To The European Gas Trade," Economics and Politics, Wiley Blackwell, vol. 1(2), pages 119-144, July.
    16. Choy, Marylin & Costa, Eduardo & Churata, Eloy, 2015. "Radiografía del costo del crédito en el Perú," Revista Estudios Económicos, Banco Central de Reserva del Perú, issue 30, pages 25-55.
    17. Harhoff, Dietmar & Wagner, Stefan, 2005. "Modelling the duration of patent examination at the European Patent Office," CEPR Discussion Papers 5283, C.E.P.R. Discussion Papers.
    18. Uwe Cantner & Andreas Nicklisch & Torsten Weiland, 2005. "Innovation races: An experimental study on strategic research activities," Papers on Strategic Interaction 2005-14, Max Planck Institute of Economics, Strategic Interaction Group.
    19. K. Conrad, 2000. "Energy Tax and Competition in Energy Efficiency: The Case of Consumer Durables," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 15(2), pages 159-177, February.
    20. Daniele Schilirò, 2019. "Sustainability, Innovation, and Efficiency: A Key Relationship," Palgrave Studies in Impact Finance, in: Magdalena Ziolo & Bruno S. Sergi (ed.), Financing Sustainable Development, chapter 0, pages 83-102, Palgrave Macmillan.

    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:gam:jmathe:v:7:y:2018:i:1:p:10-:d:192633. 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: MDPI Indexing Manager (email available below). General contact details of provider: https://www.mdpi.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.