Showing 1 - 10 of 12
Theoretical literature on collusion has focused on a specific formulation of payoff fluctuations, namely by demand shocks, and showed that payoff fluctuations are bad for collusion. Introducing general payoff fluctuations, we show that (i) payoff fluctuations may strictly reduce the minimum...
Persistent link: https://www.econbiz.de/10013116979
In the current mobile world, repeated relationships ("communities") must be self-sustained. We formulate a framework in which some or all players strategically choose whether to terminate or repeat an N-person game. A dynamic game ends when a certain number of players choose termination. To...
Persistent link: https://www.econbiz.de/10013220200
In the current mobile world, repeated relationships (communities) must be self-sustained by its members. We formulate a framework in which some or all players strategically choose whether to repeat an N-person game or to terminate it. This dynamic game ends when a certain number of players...
Persistent link: https://www.econbiz.de/10013299586
Persistent link: https://www.econbiz.de/10003585423
Persistent link: https://www.econbiz.de/10011376494
There is a widespread hope that, in the near future, algorithms become so sophisticated that ``solutions" to most problems are found by machines. In this note, we throw some doubts on this expectation by showing the following impossibility result: given a set of finite-memory, finite-iteration...
Persistent link: https://www.econbiz.de/10013241420
We analyze a noncooperative dynamic game of group formation with group reputation. It is inspired by observations of "name adoption" patterns in some retail markets. Firms are partitioned into name groups, or affiliation networks, in each period. In a group, all firms share the same group...
Persistent link: https://www.econbiz.de/10013081136
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We provide a model of dynamic duopoly in which firms face financial constraints and disappear when they are unable to fulfill them. We show that, in some cases, Cournot outputs are no longer supported in equilibrium, because if these outputs were set, a firm may have incentives to ruin the...
Persistent link: https://www.econbiz.de/10011347312
We propose a functional formulation of Nash equilibrium based on the optimization approach: the set of Nash equilibria, if it is nonempty, is identical to the set of optimizers of a real-valued function. Combining this characterization with lattice theory, we revisit the interchangeability and...
Persistent link: https://www.econbiz.de/10013220760