Lecture Notes in Economics and Mathematical Systems

Cooperation and Efficiency in Markets

Authors: Horniaček, Milan

  • The unified analysis of existence and efficiency properties of equilibria provides justification for economic policy reforms
  • The analysis of cooperative managerial capitalism is interesting for economic historians
  • The analysis of inter-firm cooperation without long term contracts is applicable in  management and business law
see more benefits

Buy this book

eBook $74.99
price for USA (gross)
  • ISBN 978-3-642-19763-5
  • Digitally watermarked, DRM-free
  • Included format: EPUB, PDF
  • ebooks can be used on all reading devices
  • Immediate eBook download after purchase
Softcover $99.00
price for USA
  • ISBN 978-3-642-19762-8
  • Free shipping for individuals worldwide
  • Usually dispatched within 3 to 5 business days.
About this book

The book deals with collusion between firms on both sides of a market that is immune to deviations by coalitions. We study this issue using an infinitely countably repeated game with discounting of future single period payoffs. A strict strong perfect equilibrium is the main solution concept that we apply. It requires that no coalition of players in no subgame can weakly Pareto improve the vector of continuation average discounted payoffs of its members by a deviation. If the sum of firms' average discounted profits is maximized along the equilibrium path then the equilibrium output of each type of good is produced with the lowest possible costs. If, in addition, all buyers are retailers (i.e., they resell the goods purchased in the analyzed market in a retail market) then the equilibrium vector of the quantities sold in the retail market is sold with the lowest possible selling costs. We specify sufficient conditions under which collusion increases consumer welfare.

About the authors

Milan Horniaček is currently an Associate Professor of Economics at the Institute of Public Policy and Economics of the Faculty of Social and Economic Sciences of the Comenius University in Bratislava. His research interests include non-cooperative game theory, industrial organization, antitrust policy and microeconomic theory. The analysis of equilibria in infinite horizon non-cooperative games that are immune to deviations by coalitions is the most important part of his research.

Reviews

From the reviews:

“The book under review studies the theory of repeated games in oligopoly theory and analyzes countably infinite repetition (or supergame) of interactions between firms on both sides of a market with dicounting of future profits. … The results of the book may be useful in adjusting antitrust policy and competition policy in the world.” (Weiping Li, Zentralblatt MATH, Vol. 1223, 2011)


Table of contents (5 chapters)

Buy this book

eBook $74.99
price for USA (gross)
  • ISBN 978-3-642-19763-5
  • Digitally watermarked, DRM-free
  • Included format: EPUB, PDF
  • ebooks can be used on all reading devices
  • Immediate eBook download after purchase
Softcover $99.00
price for USA
  • ISBN 978-3-642-19762-8
  • Free shipping for individuals worldwide
  • Usually dispatched within 3 to 5 business days.
Loading...

Recommended for you

Loading...

Bibliographic Information

Bibliographic Information
Book Title
Cooperation and Efficiency in Markets
Authors
Series Title
Lecture Notes in Economics and Mathematical Systems
Series Volume
649
Copyright
2011
Publisher
Springer-Verlag Berlin Heidelberg
Copyright Holder
Springer-Verlag Berlin Heidelberg
eBook ISBN
978-3-642-19763-5
DOI
10.1007/978-3-642-19763-5
Softcover ISBN
978-3-642-19762-8
Series ISSN
0075-8442
Edition Number
1
Number of Pages
VII, 92
Topics