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Theories of Imperfectly Competitive Markets

  • Luis C. Corchón
Book

Table of contents

  1. Front Matter
    Pages I-XII
  2. Luis C. Corchón
    Pages 1-6
  3. Luis C. Corchón
    Pages 7-33
  4. Luis C. Corchón
    Pages 35-57
  5. Luis C. Corchón
    Pages 59-89
  6. Luis C. Corchón
    Pages 91-111
  7. Luis C. Corchón
    Pages 113-140
  8. Luis C. Corchón
    Pages 141-156
  9. Back Matter
    Pages 157-178

About this book

Introduction

The ambition of the theory of imperfectly competitive markets is to explain the working of markets in which the issue of strategic interaction among firms is central. Our analysis of this problem will be based on equilibrium concepts borrowed from Game Theory. This research program arises several questions on its feasibility like the empirical relevance of the results, the substantial theoretical insights obtained in this way, etc. Unfortunately, most of these questions can not be answered in the short run. This book is written in the hope that this research strategy is meaningful, but about its final success no­ body can tell. Another important question is if simpler models could deliver the essential insights offered by the theory of imperfectly competitive mar­ kets. This Introduction will be devoted to argue that, currently, there is no alternative to the approach presented in this book. Consider the following fact: A square inch of soil in the Explanada of Ali­ cante (located in front of the sea, right in the middle of downtown) cost several times more than a square inch of soil in San Vicente del Raspeig (located sev­ eral miles toward the interior of the peninsula). l How can we explain such a thing? First notice that because of the large quantity of possible traders involved in this market, we can safely assume that any agent has to accept the market price, i. e. is a price-taker.

Keywords

Imperfect Competition Industrtial Organization Spieltheorie game theory linear optimization unvollkommener

Authors and affiliations

  • Luis C. Corchón
    • 1
  1. 1.Department of EconomicsUniversity of Madrid “Carlos III”Getafe, MadridSpain

Bibliographic information

  • DOI https://doi.org/10.1007/978-3-662-04498-8
  • Copyright Information Springer-Verlag Berlin Heidelberg 2001
  • Publisher Name Springer, Berlin, Heidelberg
  • eBook Packages Springer Book Archive
  • Print ISBN 978-3-642-07435-6
  • Online ISBN 978-3-662-04498-8
  • Buy this book on publisher's site