An imperfect competition on scale-free networks

Tomohiko Konno

Physica A: Statistical Mechanics and its Applications, 2013, vol. 392, issue 21, 5453-5460

Abstract: We study an imperfect quantity competition on networks that represent rivalry relationships among firms. We show that the more heterogeneous the underlying network is, the more the output and the price are. The output and the price on scale-free networks are counter-intuitively the same as those in the monopoly regardless of the number of rival firms. We also show that any inverse demand function represented by a network has the corresponding utility function, which justifies the inverse demand function.

Keywords: Scale-free networks; Network heterogeneity; Imperfect competition; Monopoly solution (search for similar items in EconPapers)
Date: 2013
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Citations: View citations in EconPapers (3)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:phsmap:v:392:y:2013:i:21:p:5453-5460

DOI: 10.1016/j.physa.2013.06.017

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