Multiproduct trading with a common agent under complete information: Existence and characterization of Nash equilibrium

A-Tier
Journal: Journal of Economic Theory
Year: 2017
Volume: 167
Issue: C
Pages: 14-38

Score contribution per author:

2.011 = (α=2.01 / 2 authors) × 2.0x A-tier

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

Abstract

This paper focuses on oligopolistic markets in which indivisible goods are sold by multiproduct firms to a continuum of homogeneous buyers, with measure normalized to one, who have preferences over bundles of products. By analyzing a kind of extended contract schedule (mixed bundling prices), the paper shows that pure strategy efficient equilibria always exist in such settings. While inefficient equilibria may exist, this can be ruled out by refining the equilibrium correspondence using the concept of subgame perfect Strong equilibrium. In addition, the paper shows that each principal's set of equilibrium contracts of minimum cardinality may contain at least three offers. When the social surplus function is monotone and unit costs are constant, only two offers are required at the equilibrium outcome.

Technical Details

RePEc Handle
repec:eee:jetheo:v:167:y:2017:i:c:p:14-38
Journal Field
Theory
Author Count
2
Added to Database
2026-01-24