Antitrust & Competition Policy Blog

Editor: D. Daniel Sokol
University of Florida
Levin College of Law

A Member of the Law Professor Blogs Network

Wednesday, November 2, 2011

(Weak) Correlation and Sunspots in Duopoly

Posted by D. Daniel Sokol

Indrajit Ray, Department of Economics, University of Birmingham and Sonali Sen Gupta, Department of Economics, University of Birmingham describe (Weak) Correlation and Sunspots in Duopoly.

ABSTRACT: For duopoly models, we consider the notion of weak correlation using simple symmetric devices that the players choose to commit to in equilibrium. In a linear duopoly game, we prove that Nashcentric devices involving a sunspot structure are simple symmetric weak correlated equilibria. Any small perturbation from such a structure fails to be an equilibrium.

http://lawprofessors.typepad.com/antitrustprof_blog/2011/11/weak-correlation-and-sunspots-in-duopoly.html

| Permalink

TrackBack URL for this entry:

http://www.typepad.com/services/trackback/6a00d8341bfae553ef015392039503970b

Listed below are links to weblogs that reference (Weak) Correlation and Sunspots in Duopoly:

Comments

Post a comment