Arbeitspapier
Evolution of competitive equilibrium with endogenous product differentiation
Previous theoretical researches show that learning from good performers yields intense competition and results in the low profitability of firms. These researchers do not take into account differentiation strategies being referred as a useful strategic tool to mitigate competition. We introduce an evolutionary (learning) game into a duopoly model with product differentiation on the Hotelling line. We find that central agglomeration appears in the unique stochastically stable state in which the equilibrium price is equal to the marginal cost of firms. This implies that perfectly competitive equilibrium appears even when firms have an opportunity to differentiate themselves through product differentiation and to mitigate competition.
- Sprache
-
Englisch
- Erschienen in
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Series: ISER Discussion Paper ; No. 776
- Klassifikation
-
Wirtschaft
Stochastic and Dynamic Games; Evolutionary Games; Repeated Games
Market Structure, Pricing, and Design: Perfect Competition
Market Structure, Pricing, and Design: Oligopoly and Other Forms of Market Imperfection
Other Spatial Production and Pricing Analysis
- Thema
-
product positioning
two dimensional choice
Walrasian
evolutionally stable
spatial agglomeration
Produktdifferenzierung
Verdrängungswettbewerb
Hotelling-Regel
Allgemeines Gleichgewicht
Evolutionäre Spieltheorie
Theorie
- Ereignis
-
Geistige Schöpfung
- (wer)
-
Matsumura, Toshihiro
Matsushima, Noriaki
Yamamori, Tetsuo
- Ereignis
-
Veröffentlichung
- (wer)
-
Osaka University, Institute of Social and Economic Research (ISER)
- (wo)
-
Osaka
- (wann)
-
2010
- Handle
- Letzte Aktualisierung
-
10.03.2025, 11:45 MEZ
Datenpartner
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Objekttyp
- Arbeitspapier
Beteiligte
- Matsumura, Toshihiro
- Matsushima, Noriaki
- Yamamori, Tetsuo
- Osaka University, Institute of Social and Economic Research (ISER)
Entstanden
- 2010