Analysis On Static Oligarchic Competition Under Complete Information

Non-cooperation game theory has been an important tool in economy research and variously applied in modern economics. Oligarchic competition, as the chief market competition ,contains the main contents of game theory. It is not only the jumping-off point of game theory but also the main application.Three aspects of research work have been done in this thesis. Firstly, based on economy reality, the classic Hotelling oligarchic competition model([l],[2],[27]) has been generalized(2.2?.6). It is found that, in non-cooperation, the costumers who get a bargain when they purchase lots of goods are getting what is belonged to them, and market competition doesn mean to be companied with better social welfare but tends to cause worse social welfare, and the variety of goods is the essential cause of various prices, and competition is stronger with denser demand. Secondly, price discrimination is introduced into competition(3.l?.2). It is found that the two oligarchies benefit from price discrimination and the costumers for whom the competitors are contesting benefit most, which actually balances social wealth through robbing the rich to aid the poor. Thirdly, the position game in oligarchic competition is discussed(4.l?.2). It is found that the optimum position in dual-oligarchic competition the remotest places from market center and contradicts with the economy reality, and this position puzzle can only be solved in multi-oligarchic competition.