Article
On the Endogeneity of Cournot-Nash and Stackelberg Equilibria: Games of Accumulation
Journal of Economic Theory
(2005)
Abstract
We characterize equilibria of games with two properties: (i) Agents have the opportunity to adjust their strategic variable after their initial choices and before payoffs occur; but (ii) they can only add to their initial amounts. The equilibrium set consists of just the Cournot–Nash outcome, one or both Stackelberg outcomes, or a continuum of points including the Cournot–Nash outcome and one or both Stackelberg outcomes. A simple theorem that uses agents’ standard one-period reaction functions and the one-period Cournot–Nash and Stackelberg equilibria delineates the equilibrium set. Applications include contribution, oligopoly, and rent-seeking games.
Disciplines
Publication Date
2005
Citation Information
Richard Romano and Huseyin Yildirim. "On the Endogeneity of Cournot-Nash and Stackelberg Equilibria: Games of Accumulation" Journal of Economic Theory Vol. 120 Iss. 1 (2005) p. 73 - 107 Available at: http://works.bepress.com/huseyin_yildirim/12/