The strategic Marshallian cross

B-Tier
Journal: Games and Economic Behavior
Year: 2008
Volume: 64
Issue: 2
Pages: 514-532

Authors (2)

Dickson, Alex (University of Strathclyde) Hartley, Roger (not in RePEc)

Score contribution per author:

1.009 = (α=2.02 / 2 authors) × 1.0x B-tier

α: calibrated so average coauthorship-adjusted count equals average raw count

Abstract

We prove existence and uniqueness of non-autarkic equilibria in bilateral oligopoly assuming only that preferences are binormal and satisfy a weakened version of gross substitutes. We permit complete heterogeneity of preferences and our analysis exploits the fact that payoffs depend only on own strategy and two universal aggregates. This allows us to define strategic versions of supply and demand curves such that non-autarkic Nash equilibria are in 1-1 correspondence with intersections of these curves. The same approach can be used to establish comparative statics under the assumptions above. As examples, we focus on adding players and changing endowments. This competitive approach also allows us to conclude that much of conventional Marshallian analysis is robust to strategic manipulation.

Technical Details

RePEc Handle
repec:eee:gamebe:v:64:y:2008:i:2:p:514-532
Journal Field
Theory
Author Count
2
Added to Database
2026-01-25