Optimal Policy Design with Entry: A Model of Aggregative Oligopoly Games

Grant number: DP160102948 | Funding period: 2016 - 2020

Completed

Abstract

This project aims to develop a theory of endogenous market structures using aggregative oligopoly games to engage issues in competition, trade and innovation policy. Effective and innovative policy design is crucial for economic growth and productivity. Policy analysis with endogenous market structures is in need of better tools. The toolkit of aggregative games, in which each player’s profit can be written as a function of own action and an aggregate variable, would greatly simplify the analysis of oligopoly interaction. This would lead to a tractable but general welfare analysis yielding new results. The framework is designed to allow us to examine complex policy questions in a simplified ..

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University of Melbourne Researchers