Price Competition in Product Variety Networks

Särtryck nr 2018:41

Författare: Philip Ushchev och Yves ZenouÅr: 2018 Publikation: Games and Economic Behavior Årgång (nr): 110 (Juli) Sidor: 226–247
Artikeln online (behörighet kan krävas)

We develop a product-differentiated model where the product space is a network defined as a set of varieties (nodes) linked by their degrees of substitutability (edges). We also locate consumers into this network, so that the location of each consumer (node) corresponds to her “ideal” variety. We show that there exists a unique Bertrand–Nash equilibrium where prices are determined by both the firms' sign-alternating Bonacich centralities and the average willingness to pay across consumers. We also investigate how local product differentiation and the spatial discount factor affect the equilibrium prices. We show that these effects non-trivially depend on the network structure. In particular, we find that, in a star-shaped network, the central firm does not always enjoy higher monopoly power than the peripheral firms.

Ushchev, Philip och Yves Zenou (2018), "Price Competition in Product Variety Networks". Games and Economic Behavior 110(Juli), 226–247.

Aktuell forskare

Pär Holmberg, docent.

Ämnesområden: Auktioner, elmarknad, energi, spelteori

Några av de frågor Pär Holmberg försöker besvara i sin forskning:

  • Hur ser elproducenternas budgivning ut på elmarknaden?
  • Hur påverkas budgivningen av marknadsregler, information, ställtider och flaskhalsar i elnätet? 


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