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Strategic complements and substitutes in bilateral oligopolies

Author

Listed:
  • Francis Bloch

    (CES - Centre d'économie de la Sorbonne - UP1 - Université Paris 1 Panthéon-Sorbonne - CNRS - Centre National de la Recherche Scientifique)

  • Hélène Ferrer

    (CREM - Centre de recherche en économie et management - UNICAEN - Université de Caen Normandie - NU - Normandie Université - UR - Université de Rennes - CNRS - Centre National de la Recherche Scientifique)

Abstract

This paper characterizes the equilibrium of a bilateral oligopoly where traders have CES utility functions. We show that the offers of traders on the two sides of the market are strategic substitutes if and only if the goods are complements.

Suggested Citation

  • Francis Bloch & Hélène Ferrer, 2001. "Strategic complements and substitutes in bilateral oligopolies," Post-Print halshs-02174881, HAL.
    • Handle: RePEc:hal:journl:halshs-02174881
    DOI: 10.1016/S0165-1765(00)00343-8
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    References listed on IDEAS

    as
    1. Bloch, Francis & Ghosal, Sayantan, 1997. "Stable Trading Structures in Bilateral Oligopolies," Journal of Economic Theory, Elsevier, vol. 74(2), pages 368-384, June.
    2. B. C. Eaton & Richard G. Harris (ed.), 1997. "Trade, Technology and Economics," Books, Edward Elgar Publishing, number 1020.
    3. repec:cor:louvrp:-1265 is not listed on IDEAS
    4. Bulow, Jeremy I & Geanakoplos, John D & Klemperer, Paul D, 1985. "Multimarket Oligopoly: Strategic Substitutes and Complements," Journal of Political Economy, University of Chicago Press, vol. 93(3), pages 488-511, June.
    5. Bloch, Francis & Ferrer, Helene, 2001. "Trade Fragmentation and Coordination in Strategic Market Games," Journal of Economic Theory, Elsevier, vol. 101(1), pages 301-316, November.
    6. GABSZEWICZ, Jean & MICHEL, Philippe, 1992. "Oligopoly equilibria in exchange economies," LIDAM Discussion Papers CORE 1992047, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE).
    7. Cordella, Tito & Gabszewicz, Jean J., 1998. ""Nice" Trivial Equilibria in Strategic Market Games," Games and Economic Behavior, Elsevier, vol. 22(1), pages 162-169, January.
    8. Dixit, Avinash K, 1986. "Comparative Statics for Oligopoly," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 27(1), pages 107-122, February.
    Full references (including those not matched with items on IDEAS)

    Citations

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    Cited by:

    1. Shirai, Koji, 2010. "An existence theorem for Cournot-Walras equilibria in a monopolistically competitive economy," Journal of Mathematical Economics, Elsevier, vol. 46(6), pages 1093-1102, November.
    2. Anicet Kabre, 2018. "Cobb-Douglas preferences and pollution in a bilateral oligopoly market," Working Papers hal-04141683, HAL.
    3. Ludovic A. Julien, 2015. "A note on market power in bilateral oligopoly," Economics Bulletin, AccessEcon, vol. 35(1), pages 400-406.
    4. Amir, Rabah & Bloch, Francis, 2009. "Comparative statics in a simple class of strategic market games," Games and Economic Behavior, Elsevier, vol. 65(1), pages 7-24, January.
    5. Cont, Walter & Porto, Guido, 2014. "Measuring the impact of a change in the price of Cashew received by exporters on farmgate prices and poverty in Guinea-Bissau," Policy Research Working Paper Series 7036, The World Bank.
    6. Ludovic A. Julien & Anicet Kabre & Louis de Mesnard, 2022. "Pollution in strategic multilateral exchange: taxing emissions or trading on permit markets?," Post-Print hal-03791673, HAL.
    7. GABSZEWICZ, Jean & GRAZZINI, Lisa, 2000. "Strategic multilateral exchange and taxes," LIDAM Discussion Papers CORE 2000063, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE).
    8. Anicet Kabre, 2018. "Cobb-Douglas preferences and pollution in a bilateral oligopoly market," EconomiX Working Papers 2018-48, University of Paris Nanterre, EconomiX.

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    More about this item

    Keywords

    Bilateral oligopoly; Strategic substitutes and complements; CES utility functions;
    All these keywords.

    JEL classification:

    • D43 - Microeconomics - - Market Structure, Pricing, and Design - - - Oligopoly and Other Forms of Market Imperfection
    • D51 - Microeconomics - - General Equilibrium and Disequilibrium - - - Exchange and Production Economies

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