Theories of Imperfectly Competitive Markets

Luis C. Corchon

ISBN 10: 3540411224 / ISBN 13: 9783540411222

Editore: Springer Berlin Heidelberg, Springer Berlin Heidelberg Nov 2000, 2000

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Neuware -The ambition of the theory of imperfectly competitive markets is to explain the working of markets in which the issue of strategic interaction among firms is central. Our analysis of this problem will be based on equilibrium concepts borrowed from Game Theory. This research program arises several questions on its feasibility like the empirical relevance of the results, the substantial theoretical insights obtained in this way, etc. Unfortunately, most of these questions can not be answered in the short run. This book is written in the hope that this research strategy is meaningful, but about its final success no body can tell. Another important question is if simpler models could deliver the essential insights offered by the theory of imperfectly competitive mar kets. This Introduction will be devoted to argue that, currently, there is no alternative to the approach presented in this book. Consider the following fact: A square inch of soil in the Explanada of Ali cante (located in front of the sea, right in the middle of downtown) cost several times more than a square inch of soil in San Vicente del Raspeig (located sev eral miles toward the interior of the peninsula). l How can we explain such a thing First notice that because of the large quantity of possible traders involved in this market, we can safely assume that any agent has to accept the market price, i. e. is a price-taker. 192 pp. Englisch.

Codice articolo 9783540411222

Dati bibliografici

• Titolo: Theories of Imperfectly Competitive Markets
• Editore: Springer Berlin Heidelberg, Springer Berlin Heidelberg Nov 2000
• Data di pubblicazione: 2000
• Lingua: Inglese
• ISBN 10: 3540411224
• ISBN 13: 9783540411222
• Rilegatura: Buch
• Edizione: seconda edizione
• Condizione: Neu

Descrizione articolo

Riassunto

The ambition of the theory of imperfectly competitive markets is to explain the working of markets in which the issue of strategic interaction among firms is central. Our analysis of this problem will be based on equilibrium concepts borrowed from Game Theory. This research program arises several questions on its feasibility like the empirical relevance of the results, the substantial theoretical insights obtained in this way, etc. Unfortunately, most of these questions can not be answered in the short run. This book is written in the hope that this research strategy is meaningful, but about its final success no­ body can tell. Another important question is if simpler models could deliver the essential insights offered by the theory of imperfectly competitive mar­ kets. This Introduction will be devoted to argue that, currently, there is no alternative to the approach presented in this book. Consider the following fact: A square inch of soil in the Explanada of Ali­ cante (located in front of the sea, right in the middle of downtown) cost several times more than a square inch of soil in San Vicente del Raspeig (located sev­ eral miles toward the interior of the peninsula). l How can we explain such a thing? First notice that because of the large quantity of possible traders involved in this market, we can safely assume that any agent has to accept the market price, i. e. is a price-taker.

Contenuti

Introduction.- Nash Equilibrium.- Comparative Statics.- Welfare and Competition.- Monopolistic Competition.- Two Stage Games.- Incomplete Information.