Convergence of strategic behavior to price taking

We address the following issue: what can be said about the degree of competition, in a set of markets with a large number of participants, when no information on the distribution of individual characteristics is available? Our main result is that the proportion of individuals whose strategic behavio...

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Bibliographic Details
Published in:Games and economic behavior 2009, Vol.65 (1), p.234-241
Main Author: Koutsougeras, Leonidas C.
Format: Article
Language:English
Subjects:
Competition
Convergence
Distribution
Economic activity
Information
Market structure
Price taking
Prices
Strategic behavior
Strategic behavior Price taking Convergence
Strategic behaviour
Studies
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Summary:We address the following issue: what can be said about the degree of competition, in a set of markets with a large number of participants, when no information on the distribution of individual characteristics is available? Our main result is that the proportion of individuals whose strategic behavior differs substantially from price taking, converges to zero as the number of market participants becomes large, regardless of the distribution of characteristics.
ISSN:0899-8256
1090-2473
DOI:10.1016/j.geb.2007.10.012