Mono Pricing in Hierarchical Trees

  • Willy Spanjers
Part of the Theory and Decision Library book series (TDLC, volume 15)

Abstract

In this chapter we analyze the consequences of endowing exchange economies with a structure of trade relationships as in the simple model of successive monopolies. We consider hierarchically structured economies that have a hierarchical tree as their hierarchical structure. Each trade relationship is given the institutional characteristic of mono pricing. Finally, the equilibrium concept we use applies backward induction. It corresponds to a natural and mild refinement of the subgame perfect equilibrium in the generalized sequential game of perfect information associated with the economy. We consider those subgame perfect equilibria that are also equilibria in very nice plays (EVNP).

Keywords

Perfect Information Institutional Characteristic Subgame Perfect Equilibrium Price Vector Initial Endowment 
These keywords were added by machine and not by the authors. This process is experimental and the keywords may be updated as the learning algorithm improves.

Preview

Unable to display preview. Download preview PDF.

Unable to display preview. Download preview PDF.

Copyright information

© Springer Science+Business Media Dordrecht 1997

Authors and Affiliations

  • Willy Spanjers
    • 1
  1. 1.University of SaarlandSaarbrückenGermany

Personalised recommendations