Arbeitspapier
Price competition on network
We present a model of imperfect price competition where not all firms can sell to all consumers. A network structure models the local interaction of firms and consumers. We find that aggregate surplus is maximized with a fully connected network, which corresponds to perfect competition, and decreases monotonically as the network becomes less connected until firms become local monopolists. When we study which networks are likely to form in equilibrium, we find that stable networks are not fully connected but are connected enough to rule out local monopolists. Our results extend to oligopolistic competition when consumerscan either buy from a single firm or from all firms.
- Language
-
Englisch
- Bibliographic citation
-
Series: Working Papers ; No. 2011-04
- Classification
-
Wirtschaft
Market Structure, Pricing, and Design: Oligopoly and Other Forms of Market Imperfection
Network Formation and Analysis: Theory
Production, Pricing, and Market Structure; Size Distribution of Firms
Oligopoly and Other Imperfect Markets
- Subject
-
network markets
price competition
oligopoly competition
Bertrand competition
Preiswettbewerb
Duopol
Netzwerk
- Event
-
Geistige Schöpfung
- (who)
-
Lever Guzmán, Carlos
- Event
-
Veröffentlichung
- (who)
-
Banco de México
- (where)
-
Ciudad de México
- (when)
-
2011
- Handle
- Last update
-
10.03.2025, 11:45 AM CET
Data provider
This object is provided by:
ZBW - Deutsche Zentralbibliothek für Wirtschaftswissenschaften - Leibniz-Informationszentrum Wirtschaft. If you have any questions about the object, please contact the data provider.
ZBW - Deutsche Zentralbibliothek für Wirtschaftswissenschaften - Leibniz-Informationszentrum Wirtschaft. If you have any questions about the object, please contact the data provider.
Object type
- Arbeitspapier
Associated
- Lever Guzmán, Carlos
- Banco de México
Time of origin
- 2011
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