Data/hora: 03/06/2024 00:59:36

Provedor de dados: | 31
País: | United States
Título: | A Network Model of Price Dispersion
Autores: | Pasini,   Giacomo; Pin,   Paolo; Weidenholzer,   Simon.
Data: | 2008-05-07
Ano: | 2008
Palavras-chave: | Bertrand Competition; Bayesian- Nash Equilibrium; Mobility Index; Demand and Price Analysis; D43; D85; L11.
Resumo: | We analyze a model of price competition a la Bertrand in a network environment. Firms only have a limited information on the structure of network: they know the number of potential customers they can attract and the degree distribution of customers. This incomplete information framework stimulates the use of Bayesian-Nash equilibrium. We find that, if there are customers only linked to one firm, but not all of them are, then an equilibrium in randomized strategies fails to exist. Instead, we find a symmetric equilibrium in randomized strategies. Finally, we test our results on US gasoline data. We find empirical evidence consistent with firms playing random strategies.
Tipo: | Working or Discussion Paper
Idioma: | Inglês

Identificador:

30249

http://purl.umn.edu/6230

Relação:

Fondazione Eni Enrico Mattei (FEEM)&gt;Coalition Theory Network Working Papers

CTN Nota di Lavoro

28.2008

Formato: | 27