This paper develops a game-theory model for predatory pricing via in-depth analyses of three case studies:Brooke Group Ltd.v.Brown&Williamson Tobacco Corp.,Matsushita Electric Industries Co.v.Zenith Radio Corporat...This paper develops a game-theory model for predatory pricing via in-depth analyses of three case studies:Brooke Group Ltd.v.Brown&Williamson Tobacco Corp.,Matsushita Electric Industries Co.v.Zenith Radio Corporation,and AKZO Chemie BV v.Commission of the European Communities.This model is based on subsequent action game theory models and rational economics behavior,offering a chronological outline of the“predation”stages.It presents the predator’s decisions,the prey’s potential responses,possible loops,and the two distinctive outcomes.The analysis of the model in context of the three case studies demonstrates its practicality in assessing real-life predatory pricing scenarios and players’strategies.It’s flexibility also allows applications in related fields.Overall,this paper offers a comprehensive framework that bridges the gap between law,economics,and game theory in the study of predatory pricing,informing future research in this area.展开更多
In this paper the nature of predatory pricing is analyzed with genetic algorithms. It is found that, even under the same payoff structure, the results of the coevolution of weak monopolists and entrants are sensitive ...In this paper the nature of predatory pricing is analyzed with genetic algorithms. It is found that, even under the same payoff structure, the results of the coevolution of weak monopolists and entrants are sensitive to the representationof the decisionmaking process. Two representations are studied in this paper. One is the actionbased representation and the other the strategybased representation. The former is to represent a naive mind and the latter is to capture a sophisticated mind. For the actionbased representation, the convergence results are easily obtained and predatory pricing is only temporary in all simulations. However, for the strategybased representation, predatory pricing is not a rare phenomenon and its appearance is cyclical but not regular. Therefore, the snowball effect of a little craziness observed in the experimental game theory wins its support from this representation. Furthermore, the nature of predatory pricing has something to do with the evolution of the sophisticated rather than the naive minds.展开更多
文摘This paper develops a game-theory model for predatory pricing via in-depth analyses of three case studies:Brooke Group Ltd.v.Brown&Williamson Tobacco Corp.,Matsushita Electric Industries Co.v.Zenith Radio Corporation,and AKZO Chemie BV v.Commission of the European Communities.This model is based on subsequent action game theory models and rational economics behavior,offering a chronological outline of the“predation”stages.It presents the predator’s decisions,the prey’s potential responses,possible loops,and the two distinctive outcomes.The analysis of the model in context of the three case studies demonstrates its practicality in assessing real-life predatory pricing scenarios and players’strategies.It’s flexibility also allows applications in related fields.Overall,this paper offers a comprehensive framework that bridges the gap between law,economics,and game theory in the study of predatory pricing,informing future research in this area.
文摘In this paper the nature of predatory pricing is analyzed with genetic algorithms. It is found that, even under the same payoff structure, the results of the coevolution of weak monopolists and entrants are sensitive to the representationof the decisionmaking process. Two representations are studied in this paper. One is the actionbased representation and the other the strategybased representation. The former is to represent a naive mind and the latter is to capture a sophisticated mind. For the actionbased representation, the convergence results are easily obtained and predatory pricing is only temporary in all simulations. However, for the strategybased representation, predatory pricing is not a rare phenomenon and its appearance is cyclical but not regular. Therefore, the snowball effect of a little craziness observed in the experimental game theory wins its support from this representation. Furthermore, the nature of predatory pricing has something to do with the evolution of the sophisticated rather than the naive minds.
