IDEAS home Printed from https://ideas.repec.org/p/arx/papers/2503.22825.html
   My bibliography  Save this paper

Pareto-Nash Allocations under Incomplete Information: A Model of Stable Optima

Author

Listed:
  • Alfred A. B. Mayaki

Abstract

Prior literature on two-firm two-market and two-stage extended dynamic models has introduced what Guth (2016) succinctly terms a social dilemma. A state in which conglomerate firms competing in a Bertrand duopoly consider jointly optimizing profits under a tacit self-enforcing agreement to deter market entry. This theoretical article reinterprets the social dilemma highlighted by Guth (2016) not only in the context of allocation but also through the lens of competition where entry must legally be permitted even if cooperative signalling would otherwise sustain joint profitability. This study explores the significance of a sufficiency condition on each firms non-instantaneous reaction function requiring the maintenance of a stable long-run equilibrium through retaliative restraint characterized by either two negative eigenvalues or a saddle-path trajectory.

Suggested Citation

  • Alfred A. B. Mayaki, 2025. "Pareto-Nash Allocations under Incomplete Information: A Model of Stable Optima," Papers 2503.22825, arXiv.org.
    • Handle: RePEc:arx:papers:2503.22825
    as

    Download full text from publisher

    File URL: http://arxiv.org/pdf/2503.22825
    File Function: Latest version
    Download Restriction: no
    ---><---

    More about this item

    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:arx:papers:2503.22825. 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.

    We have no bibliographic references for this item. You can help adding them by using 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: arXiv administrators (email available below). General contact details of provider: http://arxiv.org/ .

    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.