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Strategic Interaction and Markets

Jean J. Gabszewicz
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      Perfect competition provides the model of a frictionless economy, in which price-setting economic agents behave independently of each other, abandoning to the market the coordination of their individual decisions. The implications of this model are extensively presented in the traditional price theory textbooks. Imperfect competition is the paradigm that develops as soon as economic agents interact in a conscious manner, which is the rule when competition takes place amongst a restricted number of agents. In this system, agents act strategically, taking into account the impact of their decisions on competitors' behaviour and on the price mechanism. Such situations commonly arise when firms differentiate their products, erect strategic entry barriers, or exploit the imperfect information of their customers about the price or characteristics of their product. This text explores the theoretical richness of these economic contexts, using some basic tools of game theory.
      Format: CONTRIBUTORS: Jean J. Gabszewicz EAN: 9780198233411 COUNTRY: United Kingdom PAGES: WEIGHT: 314 g HEIGHT: 241 cm
      PUBLISHED BY: Oxford University Press DATE PUBLISHED: 2000-01-06 CITY: GENRE: BUSINESS & ECONOMICS / Econometrics, BUSINESS & ECONOMICS / Economics / Microeconomics, BUSINESS & ECONOMICS / Economics / Theory WIDTH: 159 cm SPINE:

      Book Themes:

      Economic theory and philosophy, Microeconomics, Business competition, Game theory

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      Perfect competition provides the model of a frictionless economy, in which price-setting economic agents behave independently of each other, abandoning to the market the coordination of their individual decisions. The implications of this model are extensively presented in the traditional price theory textbooks. Imperfect competition is the paradigm that develops as soon as economic agents interact in a conscious manner, which is the rule when competition takes place amongst a restricted number of agents. In this system, agents act strategically, taking into account the impact of their decisions on competitors' behaviour and on the price mechanism. Such situations commonly arise when firms differentiate their products, erect strategic entry barriers, or exploit the imperfect information of their customers about the price or characteristics of their product. This text explores the theoretical richness of these economic contexts, using some basic tools of game theory.
      Format: CONTRIBUTORS: Jean J. Gabszewicz EAN: 9780198233411 COUNTRY: United Kingdom PAGES: WEIGHT: 314 g HEIGHT: 241 cm
      PUBLISHED BY: Oxford University Press DATE PUBLISHED: 2000-01-06 CITY: GENRE: BUSINESS & ECONOMICS / Econometrics, BUSINESS & ECONOMICS / Economics / Microeconomics, BUSINESS & ECONOMICS / Economics / Theory WIDTH: 159 cm SPINE:

      Book Themes:

      Economic theory and philosophy, Microeconomics, Business competition, Game theory

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      Be the first to write a review
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