Article ID Journal Published Year Pages File Type
7381637 Physica A: Statistical Mechanics and its Applications 2014 10 Pages PDF
Abstract
We develop a probabilistic consumer choice framework based on information asymmetry between consumers and firms. This framework makes it possible to study market competition of several firms by both quality and price of their products. We find Nash market equilibria and other optimal strategies in various situations ranging from competition of two identical firms to firms of different sizes and firms which improve their efficiency.
Related Topics
Physical Sciences and Engineering Mathematics Mathematical Physics
Authors
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