Aggregative games and oligopoly theory: short‐run and long‐run analysis

A-Tier
Journal: RAND Journal of Economics
Year: 2020
Volume: 51
Issue: 2
Pages: 470-495

Score contribution per author:

1.341 = (α=2.01 / 3 authors) × 2.0x A-tier

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

Abstract

We compile an IO toolkit for aggregative games with positive and normative comparative statics results for asymmetric oligopoly in the short and long run. We characterize the class of aggregative Bertrand and Cournot oligopoly games, and the subset for which the aggregate is a summary statistic for consumer welfare. We close the model with a monopolistically competitive fringe for long‐run analysis. Remarkably, we show strong neutrality properties in the long run across a wide range of market structures. The results elucidate aggregative games as a unifying principle in the literature on merger analysis, privatization, Stackelberg leadership, and cost shocks.

Technical Details

RePEc Handle
repec:bla:randje:v:51:y:2020:i:2:p:470-495
Journal Field
Industrial Organization
Author Count
3
Added to Database
2026-01-24