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Justifiability of Bayesian Implementation in Oligopolistic Markets

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  • Koray, Semih
  • Saglam, Ismail

Abstract

We show that in oligopolistic markets the social choice correspondence which selects all socially efficient outcomes is Nash implementable if the number of firms is at least two. Thus, monopoly regulation whenever consumers are favored by the designer or the society is the only framework, among all oligopolistic regulatory models, where Bayesian approach is indispensable.

Suggested Citation

  • Koray, Semih & Saglam, Ismail, 1997. "Justifiability of Bayesian Implementation in Oligopolistic Markets," MPRA Paper 4459, University Library of Munich, Germany.
    • Handle: RePEc:pra:mprapa:4459
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    File URL: https://mpra.ub.uni-muenchen.de/4459/1/MPRA_paper_4459.pdf
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    References listed on IDEAS

    as
    1. Thomas R. Palfrey & Sanjay Srivastava, 1987. "On Bayesian Implementable Allocations," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 54(2), pages 193-208.
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    6. Saijo, Tatsuyoshi, 1988. "Strategy Space Reduction in Maskin's Theorem: Sufficient Conditions for Nash Implementation," Econometrica, Econometric Society, vol. 56(3), pages 693-700, May.
    7. Moore, John & Repullo, Rafael, 1990. "Nash Implementation: A Full Characterization," Econometrica, Econometric Society, vol. 58(5), pages 1083-1099, September.
    8. Palfrey, Thomas R & Srivastava, Sanjay, 1989. "Implementation with Incomplete Information in Exchange Economies," Econometrica, Econometric Society, vol. 57(1), pages 115-134, January.
    9. Vogelsang, Ingo, 1988. "A Little Paradox in the Design of Regulatory Mechanisms," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 29(3), pages 467-476, August.
    10. Laffont, Jean-Jacques, 1994. "The New Economics of Regulation Ten Years After," Econometrica, Econometric Society, vol. 62(3), pages 507-537, May.
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    12. Koray, Semih & Saglam, Ismail, 2005. "Learning in Bayesian Regulation," MPRA Paper 1899, University Library of Munich, Germany.
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    More about this item

    Keywords

    Bayesian Implementation; Nash Implementation; Asymmetric Information; Oligopoly; Regulation;
    All these keywords.

    JEL classification:

    • D82 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Asymmetric and Private Information; Mechanism Design
    • D70 - Microeconomics - - Analysis of Collective Decision-Making - - - General
    • L50 - Industrial Organization - - Regulation and Industrial Policy - - - General

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