Market formation in bilateral oligopolies

Arbeitspapier

This paper investigates the structure of bilateral oligopolies - a simple version of Shapley Shubik games with two types of traders and two commodities. It shows that interior equilibria exist, studies the example of CES utility functions to uncover the relation between the complementarity of products in the utility functions and the shape of the reaction functions of the traders, and proves that the number of trading posts is irrelevant. Even if traders can split their offers on different markets, they never choose to specialize and all equilibria are equivalent to an equilibrium where all agents trade on a single market.

Object Details

• Language: Englisch

References and Relationships

• Bibliographic citation: Series: Nota di Lavoro ; No. 59.1999

Classification and Topics

• Classification: Wirtschaft ; Market Structure, Pricing, and Design: Oligopoly and Other Forms of Market Imperfection ; Oligopoly and Other Imperfect Markets
• Subject: Strategic market games ; Trade agglomeration ; Bilateral oligopolies ; Market formation ; Oligopol ; Bilaterales Monopol ; Gleichgewichtstheorie ; Marktmechanismus ; Spieltheorie ; Theorie

Contributors, Places and Time

• Event: Geistige Schöpfung
• (who): Bloch, Francis ; Ferrer, Hélène
• Event: Veröffentlichung
• (who): Fondazione Eni Enrico Mattei (FEEM)
• (where): Milano
• (when): 1999

Further information

• Handle: http://hdl.handle.net/10419/155013
• Last update: 10.03.2025, 11:42 AM CET