The theory of oligopoly with multi-product firms (Q1188712)

This book considers the application of game theory to the study of oligopolistic markets with multiproduct firms. It summarizes and extends the authors' previous works in that area. Chapter 2 discusses the classical oligopoly game and some of its extensions, for instance, product differentiation and group equilibrium problems. Chapter 3 establishes existence and uniqueness of the Nash- Cournot equilibrium in a static multiproduct oligopoly game. Specific cases of product differentiation, single product firms and linear price and cost functions are also investigated. Chapters 4 and 5 are devoted to the analysis of the dynamic multiproduct oligopoly problem, in discrete and continuous time, respectively. Out-of- equilibrium behavior is modelled by certain adjustment processes: (i) Cournot behavior, (ii) adaptive (first) expectations on the output of the rest of the industry and (iii) a combined mechanism consisting of Cournot conjectures on some portions of the output of the rest of the industry and adaptive expectations on other portions. In addition, sequential adjustment processes are considered where each player updates his strategy based on the latest strategies of the rivals or, alternatively, on several previous observations. Chapter 6 extends the results of Chapters 4 and 5 by introducing quadratic games and, more general, nonlinear games as well as time-dependent price and cost functions.