Cones of Games Arising from Market Entry Problems
CentER Working Paper No. 44
9 Pages Posted: 23 Nov 2000
Date Written: April 2000
Market entry situations are modelled, where an entrepreneur has to decide for a collection of markets which market to enter and which not. The entrepreneur can improve his prior information by making use of a group of informants, each of them knowing the situation in one or more markets. For such a market entry situation a related cooperative game is introduced, which can be helpful in dealing with the question of how to share the reward of cooperation. The games arising turn out to be elements of the cone of information market games which were introduced for another economic context. This implies that the cooperative solutions of these games have interesting properties. Extra attention is paid to the subcone of information market games arising from market entry situations where for each market only one informant knows the state of the market.
Keywords: cooperative games, information, market entry, information market games
JEL Classification: C71, D89
Suggested Citation: Suggested Citation