IDEAS home Printed from https://ideas.repec.org/p/hal/wpaper/halshs-00924990.html
   My bibliography  Save this paper

A Note on Networks of Collaboration in Multi-market Oligopolies

Author

Listed:
  • Pascal Billand

    (GATE Lyon Saint-Étienne - Groupe d'Analyse et de Théorie Economique Lyon - Saint-Etienne - ENS de Lyon - École normale supérieure de Lyon - Université de Lyon - UL2 - Université Lumière - Lyon 2 - UCBL - Université Claude Bernard Lyon 1 - Université de Lyon - UJM - Université Jean Monnet - Saint-Étienne - CNRS - Centre National de la Recherche Scientifique)

  • Christophe Bravard

    (GATE Lyon Saint-Étienne - Groupe d'Analyse et de Théorie Economique Lyon - Saint-Etienne - ENS de Lyon - École normale supérieure de Lyon - Université de Lyon - UL2 - Université Lumière - Lyon 2 - UCBL - Université Claude Bernard Lyon 1 - Université de Lyon - UJM - Université Jean Monnet - Saint-Étienne - CNRS - Centre National de la Recherche Scientifique)

  • Subhadip Chakrabarti

    (QUB - Queen's University [Belfast])

  • Sudipta Sarangi

    (Department of Economics, Louisiana State University - LSU - Louisiana State University [BatonRouge])

Abstract

In this note, we extend the Goyal and Joshi's model of network of collaboration in oligopoly to multi-market situations. We examine the incentive of firms to form links and the architectures of the resulting equilibrium networks in this setting. We also present some results on efficient networks.

Suggested Citation

  • Pascal Billand & Christophe Bravard & Subhadip Chakrabarti & Sudipta Sarangi, 2014. "A Note on Networks of Collaboration in Multi-market Oligopolies," Working Papers halshs-00924990, HAL.
    • Handle: RePEc:hal:wpaper:halshs-00924990
    Note: View the original document on HAL open archive server: https://shs.hal.science/halshs-00924990v1
    as

    Download full text from publisher

    File URL: https://shs.hal.science/halshs-00924990v1/document
    Download Restriction: no
    ---><---

    Other versions of this item:

    References listed on IDEAS

    as
    1. Subhadip Chakrabarti & Hans Haller, 2011. "An Analysis Of Advertising Wars," Manchester School, University of Manchester, vol. 79(1), pages 100-124, January.
    2. Jackson, Matthew O. & Wolinsky, Asher, 1996. "A Strategic Model of Social and Economic Networks," Journal of Economic Theory, Elsevier, vol. 71(1), pages 44-74, October.
    3. Goyal, Sanjeev & Joshi, Sumit, 2003. "Networks of collaboration in oligopoly," Games and Economic Behavior, Elsevier, vol. 43(1), pages 57-85, April.
    4. Mohamed Belhaj & Sebastian Bervoets & Frédéric Deroïan, 2013. "Network Design under Local Complementarities," Working Papers halshs-00796487, HAL.
    5. Francis Bloch, 1995. "Endogenous Structures of Association in Oligopolies," RAND Journal of Economics, The RAND Corporation, vol. 26(3), pages 537-556, Autumn.
    6. Sanjeev Goyal & Sumit Joshi, 2006. "Unequal connections," International Journal of Game Theory, Springer;Game Theory Society, vol. 34(3), pages 319-349, October.
    7. 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.
    8. Bastian Westbrock, 2010. "Natural concentration in industrial research collaboration," RAND Journal of Economics, RAND Corporation, vol. 41(2), pages 351-371, June.
    9. Nirvikar Singh & Xavier Vives, 1984. "Price and Quantity Competition in a Differentiated Duopoly," RAND Journal of Economics, The RAND Corporation, vol. 15(4), pages 546-554, Winter.
    10. B. Douglas Bernheim & Michael D. Whinston, 1990. "Multimarket Contact and Collusive Behavior," RAND Journal of Economics, The RAND Corporation, vol. 21(1), pages 1-26, Spring.
    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. Panebianco, Fabrizio & Verdier, Thierry & Zenou, Yves, 2016. "Innovation, Pricing and Targeting in Networks," CEPR Discussion Papers 11398, C.E.P.R. Discussion Papers.
    2. Billand, Pascal & Bravard, Christophe & Durieu, Jacques & Sarangi, Sudipta, 2015. "Efficient networks for a class of games with global spillovers," Journal of Mathematical Economics, Elsevier, vol. 61(C), pages 203-210.
    3. Zhao, LiuWei & Du, Jianguo & Wang, QiWei, 2019. "Nonlinear analysis and chaos control of the complex dynamics of multi-market Cournot game with bounded rationality," Mathematics and Computers in Simulation (MATCOM), Elsevier, vol. 162(C), pages 45-57.
    4. Ushchev, Philip & Zenou, Yves, 2018. "Price competition in product variety networks," Games and Economic Behavior, Elsevier, vol. 110(C), pages 226-247.
    5. Ying‐Ju Chen & Yves Zenou & Junjie Zhou, 2018. "Competitive pricing strategies in social networks," RAND Journal of Economics, RAND Corporation, vol. 49(3), pages 672-705, September.
    6. Ushchev, Philip & Zenou, Yves, 2018. "Price competition in product variety networks," Games and Economic Behavior, Elsevier, vol. 110(C), pages 226-247.
    7. Battaggion, Maria Rosa & Cerasi, Vittoria, 2020. "Strategic interlocking directorates," Journal of Economic Behavior & Organization, Elsevier, vol. 178(C), pages 85-101.
    8. Subhadip Chakrabarti & Robert P. Gilles & Emiliya Lazarova, 2018. "Partial cooperation in strategic multi-sided decision situations," Theory and Decision, Springer, vol. 85(3), pages 455-478, October.

    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. Pascal Billand & Christophe Bravard & Subhadip Chakrabarti & Sudipta Sarangi, 2013. "Abram Bergson," Working Papers 1339, Groupe d'Analyse et de Théorie Economique Lyon St-Étienne (GATE Lyon St-Étienne), Université de Lyon.
    2. Christophe Bravard & Sudipta Sarangi & PASCAL BILLAND & CHRISTOPHE BRAVARD & SUBHADIP CHAKRABARTI & SUDIPTA SARANGI, 2016. "Business Intelligence and Multimarket Competition," Journal of Public Economic Theory, Association for Public Economic Theory, vol. 18(2), pages 248-267, April.
    3. Billand, Pascal & Bravard, Christophe & Chakrabarti, Subhadip & Sarangi, Sudipta, 2010. "Networks of Collaboration in Multi-market Oligopolies," MPRA Paper 28188, University Library of Munich, Germany.
    4. Michael D. König & Xiaodong Liu & Yves Zenou, 2019. "R&D Networks: Theory, Empirics, and Policy Implications," The Review of Economics and Statistics, MIT Press, vol. 101(3), pages 476-491, July.
    5. Lorenzo Zirulia, 2012. "The role of spillovers in R&D network formation," Economics of Innovation and New Technology, Taylor & Francis Journals, vol. 21(1), pages 83-105, November.
    6. Billand, Pascal & Bravard, Christophe & Durieu, Jacques & Sarangi, Sudipta, 2015. "Efficient networks for a class of games with global spillovers," Journal of Mathematical Economics, Elsevier, vol. 61(C), pages 203-210.
    7. Bastian Westbrock, 2010. "Natural concentration in industrial research collaboration," RAND Journal of Economics, RAND Corporation, vol. 41(2), pages 351-371, June.
    8. Ushchev, Philip & Zenou, Yves, 2018. "Price competition in product variety networks," Games and Economic Behavior, Elsevier, vol. 110(C), pages 226-247.
    9. Qiang Gong & Huanxing Yang, 2020. "Collaborative Networks in Oligopoly with Asymmetric Firms," Review of Industrial Organization, Springer;The Industrial Organization Society, vol. 56(2), pages 357-380, March.
    10. Belleflamme,Paul & Peitz,Martin, 2015. "Industrial Organization," Cambridge Books, Cambridge University Press, number 9781107687899, November.
    11. Grandjean, G. & Tellone, D. & Vergote, W., 2017. "Endogenous network formation in a Tullock contest," Mathematical Social Sciences, Elsevier, vol. 85(C), pages 1-10.
    12. Dawid, Herbert & Hellmann, Tim, 2014. "The evolution of R&D networks," Journal of Economic Behavior & Organization, Elsevier, vol. 105(C), pages 158-172.
    13. Marco Marini, 2007. "An Overview of Coalition & Network Formation Models for Economic Applications," Working Papers 0712, University of Urbino Carlo Bo, Department of Economics, Society & Politics - Scientific Committee - L. Stefanini & G. Travaglini, revised 2007.
    14. König, Michael D. & Battiston, Stefano & Napoletano, Mauro & Schweitzer, Frank, 2012. "The efficiency and stability of R&D networks," Games and Economic Behavior, Elsevier, vol. 75(2), pages 694-713.
    15. Mohamad Alghamdi, 2023. "Forming Stable R&D Networks in Different Market Structures," Annals of Economics and Finance, Society for AEF, vol. 24(1), pages 91-117, May.
    16. Bajeux-Besnainou, Isabelle & Joshi, Sumit & Vonortas, Nicholas, 2010. "Uncertainty, networks and real options," Journal of Economic Behavior & Organization, Elsevier, vol. 75(3), pages 523-541, September.
    17. Mauro Caminati, 2012. "Self sustaining R&D networks," Department of Economics University of Siena 653, Department of Economics, University of Siena.
    18. Deroian, F., 2008. "Dissemination of spillovers in cost-reducing alliances," Research in Economics, Elsevier, vol. 62(1), pages 34-44, March.
    19. Bayer, Péter & Guerdjikova, Ani, 2024. "Optimism leads to optimality: Ambiguity in network formation," Journal of Economic Dynamics and Control, Elsevier, vol. 168(C).
    20. Emmanuel Petrakis & Nikolas Tsakas, 2018. "The effect of entry on R&D networks," RAND Journal of Economics, RAND Corporation, vol. 49(3), pages 706-750, September.

    More about this item

    Keywords

    R&D Collaborations; Network Formation; Multi-market Oligopolies;
    All these keywords.

    JEL classification:

    • C70 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - General
    • L13 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Oligopoly and Other Imperfect Markets
    • L20 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - General
    • D85 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Network Formation

    NEP fields

    This paper has been announced in the following NEP Reports:

    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:hal:wpaper:halshs-00924990. 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: CCSD (email available below). General contact details of provider: https://hal.archives-ouvertes.fr/ .

    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.