On the microeconomic foundations of linear demand for differentiated products
TLDR
This paper provides a thorough exploration of the microeconomic foundations for the multi-variate linear demand function for differentiated products, which is widely used in industrial organization and finds that strict concavity of the quadratic utility function is critical for the demand system to be well defined.About:
This article is published in Journal of Economic Theory.The article was published on 2017-05-01 and is currently open access. It has received 61 citations till now. The article focuses on the topics: Demand curve & Law of demand.read more
Citations
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Linear demand systems for differentiated goods: Overview and user’s guide
Philippe Choné,Laurent Linnemer +1 more
TL;DR: It is shown that all tractable versions of the model used in practice are (almost) identical and have a mean-variance structure.
Journal ArticleDOI
Capacity investment in electricity markets under supply and demand uncertainty
TL;DR: In this article, a game theoretical model was developed to analyze how the inclusion of renewable energies sources (RES-E) in the electricity wholesale market affects equilibrium outcomes under demand and supply uncertainty.
Posted Content
Hump-shaped cross-price effects and the extensive margin in cross-border shopping
TL;DR: In this article, the effect of cross-border shopping on grocery demand in Norway using monthly store*category sales data from Norway's largest grocery chain 2011-2016 is examined and the sensitivity of demand to foreign price is hump-shaped and greatest 30-60 minutes' driving distance from the closest foreign store.
Journal ArticleDOI
Bounding payoffs in repeated games with private monitoring: n-player games
Takuo Sugaya,Alexander Wolitzky +1 more
TL;DR: A simple upper bound on the Nash equilibrium payoff set at a fixed discount factor in repeated games with imperfect private monitoring is provided and can be applied “off-the-shelf” to any repeated game.
References
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Book
Matrix Analysis
Roger A. Horn,Charles R. Johnson +1 more
TL;DR: In this article, the authors present results of both classic and recent matrix analyses using canonical forms as a unifying theme, and demonstrate their importance in a variety of applications, such as linear algebra and matrix theory.
Journal ArticleDOI
Price and quantity competition in a differentiated duopoly
Nirvikar Singh,Xavier Vives +1 more
TL;DR: The authors analyzes the duality of prices and quantities in a differentiated duopoly and shows that if firms can only make two types of binding contracts with consumers, the price contract and the quantity contract, it is a dominant strategy for each firm to choose the quantity (price) contract, provided the goods are substitutes (complements).
Book
Supermodularity and Complementarity
TL;DR: In this article, the authors introduce the concept of lattices, supermodular functions, and optimal decision models for cooperative games and non-cooperative games, and present a review of the literature.
Book
Oligopoly Pricing: Old Ideas and New Tools
TL;DR: In this article, Vives applies a modern game-theoretic approach to develop a theory of oligopoly pricing, using two-stage games, the modeling of competition under asymmetric information and mechanism design theory, and the theory of repeated and dynamic games.