Two‐Aggregate Games: Demonstration Using a Production–Appropriation Model

Richard Cornes, Roger Hartley and Yuji Tamura

Scandinavian Journal of Economics, 2019, vol. 121, issue 1, 353-378

Abstract: We expand the scope of the two‐aggregate method by applying it to a situation in which many heterogeneous players are free to contribute to both aggregates. Such situations naturally arise in various resource allocation problems. Hence, our method is useful in many applications. A production–appropriation model is employed to illustrate how the problem of establishing the Nash equilibrium can be reduced from solving n>2 best‐response functions in n unknowns to solving two consistency conditions in two unknowns. We then conduct a comparative static exercise that the conventional approach could not handle easily, if at all, to demonstrate the power of our method.

Date: 2019
References: Add references at CitEc
Citations: View citations in EconPapers (1)

Downloads: (external link)
https://doi.org/10.1111/sjoe.12257

Related works:
Working Paper: Two-aggregate games: Demonstration using a production-appropriation model (2017)
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:bla:scandj:v:121:y:2019:i:1:p:353-378

Ordering information: This journal article can be ordered from
http://www.blackwell ... bs.asp?ref=0347-0520

Access Statistics for this article

Scandinavian Journal of Economics is currently edited by Richard Friberg, Matti Liski and Kjetil Storesletten

More articles in Scandinavian Journal of Economics from Wiley Blackwell
Bibliographic data for series maintained by Wiley Content Delivery ().