Market Games and Successive Oligopolies

Abstract

This paper first introduces an approach relying on market games to examine how successive oligopolies do operate between downstream and upstream markets. This approach is then compared with the traditional analysis of oligopolistic interaction in successive markets. The market outcomes resulting from the two approaches are analysed under different technological regimes, decreasing vs constant returns.

Keywords: Successive oligopolies, market games, entry, double marginalization

JEL Classification: D43, L1, L13, L22