Trade fragmentation and coordination in bilateral oligopolies
This paper studies a strategic market game where agents fragment their bids on different markets. Simple conditions for existence of an interior equilibrium point are provided. In equilibrium, all agents are active on the same markets and prices are identical across markets, so that all equilibria are equivalent to an equilibrium where all agents trade on a single market.
A strategic market game with complete markets
Existence of equilibrium is proved for an exchange strategic market game with complete markets. An example of equilibrium with inconsistent prices is given.
Taxing market power
We investigate the effectiveness of tax and transfer policies in correcting market distortions when the economy is imperfectly competitive. We perform this analysis in the context of an exchange model representing a bilateral oligopoly situation, which constitutes a particular example of a Shapley-Shubik strategic market game.