IDEAS home Printed from https://ideas.repec.org/a/spr/annopr/v248y2017i1d10.1007_s10479-016-2211-7.html
   My bibliography  Save this article

Endogenous interval games in oligopolies and the cores

Author

Listed:
  • Aymeric Lardon

    (University of Nice-Sophia Antipolis)

Abstract

In this article we study interval games in oligopolies following the $$\gamma $$ γ -approach. First, we analyze their non-cooperative foundation and show that each coalition is associated with an endogenous real interval. Second, the Hurwicz criterion turns out to be a key concept to provide a necessary and sufficient condition for the non-emptiness of each of the induced core solution concepts: the interval and the standard $$\gamma $$ γ -cores. The first condition permits to ascertain that even for linear and symmetric industries the interval $$\gamma $$ γ -core is empty. Moreover, by means of the approximation technique of quadratic Bézier curves we prove that the second condition always holds, hence the standard $$\gamma $$ γ -core is non-empty, under natural properties of profit and cost functions.

Suggested Citation

  • Aymeric Lardon, 2017. "Endogenous interval games in oligopolies and the cores," Annals of Operations Research, Springer, vol. 248(1), pages 345-363, January.
  • Handle: RePEc:spr:annopr:v:248:y:2017:i:1:d:10.1007_s10479-016-2211-7
    DOI: 10.1007/s10479-016-2211-7
    as

    Download full text from publisher

    File URL: http://link.springer.com/10.1007/s10479-016-2211-7
    File Function: Abstract
    Download Restriction: Access to the full text of the articles in this series is restricted.

    File URL: https://libkey.io/10.1007/s10479-016-2211-7?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 look for a different version below or search for a different version of it.

    Other versions of this item:

    References listed on IDEAS

    as
    1. Parkash Chander & Henry Tulkens, 2006. "The Core of an Economy with Multilateral Environmental Externalities," Springer Books, in: Parkash Chander & Jacques Drèze & C. Knox Lovell & Jack Mintz (ed.), Public goods, environmental externalities and fiscal competition, chapter 0, pages 153-175, Springer.
    2. James W. Friedman, 1971. "A Non-cooperative Equilibrium for Supergames," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 38(1), pages 1-12.
    3. Driessen, Theo S.H. & Meinhardt, Holger I., 2005. "Convexity of oligopoly games without transferable technologies," Mathematical Social Sciences, Elsevier, vol. 50(1), pages 102-126, July.
    4. Debreu, Gerard, 1976. "Smooth Preferences: A Corrigendum," Econometrica, Econometric Society, vol. 44(4), pages 831-832, July.
    5. Zhao, J, 1996. "A B-Core Existence Result and its Application to Oligopoly Markets," ISER Discussion Paper 0418, Institute of Social and Economic Research, Osaka University.
    6. Roger B. Myerson, 1978. "Threat Equilibria and Fair Settlements in Cooperative Games," Mathematics of Operations Research, INFORMS, vol. 3(4), pages 265-274, November.
    7. Rader, Trout, 1979. "Nice demand functions - II," Journal of Mathematical Economics, Elsevier, vol. 6(3), pages 253-262, December.
    8. Norde, Henk & Pham Do, Kim Hang & Tijs, Stef, 2002. "Oligopoly games with and without transferable technologies," Mathematical Social Sciences, Elsevier, vol. 43(2), pages 187-207, March.
    9. Paraskevas Lekeas & Giorgos Stamatopoulos, 2014. "Cooperative oligopoly games with boundedly rational firms," Annals of Operations Research, Springer, vol. 223(1), pages 255-272, December.
    10. Aymeric Lardon, 2012. "The γ-core in Cournot oligopoly TU-games with capacity constraints," Theory and Decision, Springer, vol. 72(3), pages 387-411, March.
    11. Monteiro, Paulo Klinger & Pascoa, Mario Rui & da Costa Werlang, Sergio Ribeiro, 1996. "On the differentiability of the consumer demand function," Journal of Mathematical Economics, Elsevier, vol. 25(2), pages 247-261.
    12. Alparslan Gök, S.Z. & Branzei, O. & Branzei, R. & Tijs, S., 2011. "Set-valued solution concepts using interval-type payoffs for interval games," Journal of Mathematical Economics, Elsevier, vol. 47(4-5), pages 621-626.
    13. S. Alparslan-Gök & Silvia Miquel & Stef Tijs, 2009. "Cooperation under interval uncertainty," Mathematical Methods of Operations Research, Springer;Gesellschaft für Operations Research (GOR);Nederlands Genootschap voor Besliskunde (NGB), vol. 69(1), pages 99-109, March.
    14. Abreu, Dilip, 1988. "On the Theory of Infinitely Repeated Games with Discounting," Econometrica, Econometric Society, vol. 56(2), pages 383-396, March.
    15. Zhao, Jingang, 1999. "A [beta]-Core Existence Result and Its Application to Oligopoly Markets," Games and Economic Behavior, Elsevier, vol. 27(1), pages 153-168, April.
    16. Rader, J Trout, 1973. "Nice Demand Functions," Econometrica, Econometric Society, vol. 41(5), pages 913-935, September.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Lina Mallozzi & Juan Vidal-Puga, 2021. "Uncertainty in cooperative interval games: how Hurwicz criterion compatibility leads to egalitarianism," Annals of Operations Research, Springer, vol. 301(1), pages 143-159, June.
    2. Stamatopoulos, Giorgos, 2018. "On the gamma-core of asymmetric aggregative games," MPRA Paper 88722, University Library of Munich, Germany.
    3. Giorgos Stamatopoulos, 2020. "On the $$\gamma $$γ-core of asymmetric aggregative games," Theory and Decision, Springer, vol. 88(4), pages 493-504, May.
    4. Aymeric Lardon, 2020. "Convexity of Bertrand oligopoly TU-games with differentiated products," Annals of Operations Research, Springer, vol. 287(1), pages 285-302, April.

    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. Aymeric Lardon, 2017. "On the Coalitional Stability of Monopoly Power in Differentiated Bertrand and Cournot Oligopolies," GREDEG Working Papers 2017-10, Groupe de REcherche en Droit, Economie, Gestion (GREDEG CNRS), Université Côte d'Azur, France.
    2. Aymeric Lardon, 2019. "On the coalitional stability of monopoly power in differentiated Bertrand and Cournot oligopolies," Theory and Decision, Springer, vol. 87(4), pages 421-449, November.
    3. Stéphane Gonzalez & Aymeric Lardon, 2018. "Optimal deterrence of cooperation," International Journal of Game Theory, Springer;Game Theory Society, vol. 47(1), pages 207-227, March.
    4. Dongshuang Hou & Aymeric Lardon & T. S. H. Driessen, 2017. "Stackelberg Oligopoly TU-Games: Characterization and Nonemptiness of the Core," International Game Theory Review (IGTR), World Scientific Publishing Co. Pte. Ltd., vol. 19(04), pages 1-16, December.
    5. Stamatopoulos, Giorgos, 2018. "Cooperative games with externalities and probabilistic coalitional beliefs," MPRA Paper 92862, University Library of Munich, Germany.
    6. Paraskevas Lekeas & Giorgos Stamatopoulos, 2016. "Cooperative Games with Externalities and Probabilistic Coalitional Beliefs," Working Papers 1605, University of Crete, Department of Economics.
    7. Aymeric Lardon, 2020. "Convexity of Bertrand oligopoly TU-games with differentiated products," Annals of Operations Research, Springer, vol. 287(1), pages 285-302, April.
    8. Aymeric Lardon, 2014. "A Partial Characterization of the Core in Bertrand Oligopoly TU-games with Transferable Technologies," GREDEG Working Papers 2014-33, Groupe de REcherche en Droit, Economie, Gestion (GREDEG CNRS), Université Côte d'Azur, France.
    9. Dongshuang Hou & Theo Driessen & Aymeric Lardon, 2011. "Convexity and the Shapley value in Bertrand oligopoly TU-games with Shubik's demand functions," Working Papers halshs-00610838, HAL.
    10. Theo Driessen & Dongshuang Hou & Aymeric Lardon, 2011. "Stackelberg oligopoly TU-games: characterization of the core and 1-concavity of the dual game," Working Papers halshs-00610840, HAL.
    11. Rui Pascoa, Mario & Ribeiro da Costa Werlang, Sergio, 1999. "Determinacy of equilibria in nonsmooth economies," Journal of Mathematical Economics, Elsevier, vol. 32(3), pages 289-302, November.
    12. Zhao, Jingang, 2018. "Three little-known and yet still significant contributions of Lloyd Shapley," Games and Economic Behavior, Elsevier, vol. 108(C), pages 592-599.
    13. Takeda, Kohei & Hosoe, Toyoki & Watanabe, Takayuki & Matsubayashi, Nobuo, 2018. "Stability analysis of horizontal mergers in a market with asymmetric substitutability," Mathematical Social Sciences, Elsevier, vol. 96(C), pages 73-84.
    14. Aymeric Lardon, 2012. "The γ-core in Cournot oligopoly TU-games with capacity constraints," Theory and Decision, Springer, vol. 72(3), pages 387-411, March.
    15. Monteiro, Paulo Klinger & Pascoa, Mario Rui & da Costa Werlang, Sergio Ribeiro, 1996. "On the differentiability of the consumer demand function," Journal of Mathematical Economics, Elsevier, vol. 25(2), pages 247-261.
    16. Paraskevas Lekeas & Giorgos Stamatopoulos, 2014. "Cooperative oligopoly games with boundedly rational firms," Annals of Operations Research, Springer, vol. 223(1), pages 255-272, December.
    17. László Á. Kóczy, 2018. "Partition Function Form Games," Theory and Decision Library C, Springer, number 978-3-319-69841-0, December.
    18. Sergio Currarini & Marco A. Marini, 2015. "Coalitional Approaches to Collusive Agreements in Oligopoly Games," Manchester School, University of Manchester, vol. 83(3), pages 253-287, June.
    19. Parkash Chander, 2020. "Stability of the merger-to-monopoly and a core concept for partition function games," International Journal of Game Theory, Springer;Game Theory Society, vol. 49(4), pages 953-973, December.
    20. Driessen, Theo S.H. & Meinhardt, Holger I., 2005. "Convexity of oligopoly games without transferable technologies," Mathematical Social Sciences, Elsevier, vol. 50(1), pages 102-126, July.

    More about this item

    Keywords

    Interval game; Oligopoly; $$gamma $$ γ -Cores; Hurwicz criterion; Quadratic Bézier curve;
    All these keywords.

    JEL classification:

    • C71 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Cooperative Games
    • D43 - Microeconomics - - Market Structure, Pricing, and Design - - - Oligopoly and Other Forms of Market Imperfection

    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:spr:annopr:v:248:y:2017:i:1:d:10.1007_s10479-016-2211-7. 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: Sonal Shukla or Springer Nature Abstracting and Indexing (email available below). General contact details of provider: http://www.springer.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.