Absract:

In this paper, we investigate market power and its welfare effects in a sequential strategic market game model in which agents behave non-cooperatively. To this end, we consider a multiple leader-follower game with only atoms in the context of a two-commodity exchange economy. We provide a measure of market power and characterize market power in strategic sequential equilibrium. In addition, we compare the properties of this sequential model, on the one hand, with the properties of the simultaneous move version of the strategic market game, and, on the other hand, with the properties of the standard Stackelberg model with one industry. Examples illustrate the properties of the model.

Location:

Room 2E29, CEPS ENS Paris-Saclay
4 avenue des Sciences, 91190, Gif-sur-Yvette