Oligopoly and behavioral uncertainty: An application of fuzzy set theory

Greenhut, John G.; Greenhut, Melvin L.; Mansur, Yusuf

doi:10.1007/bf01027075

Cited by 15 publications

(11 citation statements)

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“…For models of perfect competition and some types of oligopolies, it is characteristic that firms produce about an equal volume of goods (Greenhut et al, 1995). With increasing output gap there increases the degree of monopolization of the industry too.…”

Section: Methodsmentioning

confidence: 99%

Assessing of the Competitiveness Level in the Industry using the Correlation Analysis on the Example of Agriculture of the Republic of Tatarstan, Russian Federation

Khasanova¹,

Fazullina²

2015

American Journal of Agricultural and Biological Sciences

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This study presents the results of evaluation of the competitiveness of farmers and the agricultural sector in the region as a whole. Traditional approach of estimating monopolization level uses Herfindahl-Hirshman and Lerner indexes. But this methods not applicable in case of inhomogeneity of product in industry or when firms manufacture different type of products. The evaluation was performed by using the instruments of fuzzy set theory and the correlation analysis. This technique allows us to estimate the degree of monopolization of the industry and its sub-sectors, as well as to hold a comparative analysis and to identify trends of development. Technique consists several steps. Determine the maximum amount of product produced by any company in the sector in the period and the percentage of the volume of production from which the company can be named as leader. Fuzzy numbers of leadership are calculated for each firm's product. If the company produces more than one product, the fuzzy numbers for each product are aggregated into one by using the fuzzy operation "or". Depending on the percentage level in the industry will change and the number of companies that are recognized as leaders. Simulations proved that correlation between percentage level and number of leaders in industry depends on market structure: Monopoly, oligopoly or pure competition. Correlation coefficient tends from -1 for the monopolized industries to 0 for pure competition. We provided computer simulation to calculate the boundaries of correlation coefficient to identify types of market structure. The analysis was held according to the industrial and economic activity of all 509 agricultural enterprises and 13 types of products in Republic Tatarstan of Russian Federation during 2011-2013. The obtained results are comparable with the results of the calculation the Herfindahl-Hirschman index for each product. However, the proposed technique allows us to make a general assessment of industry's competitiveness. The technique has an applied significance in the development of government support measures.

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Section: Methodsmentioning

confidence: 99%

Assessing of the Competitiveness Level in the Industry using the Correlation Analysis on the Example of Agriculture of the Republic of Tatarstan, Russian Federation

Khasanova¹,

Fazullina²

2015

American Journal of Agricultural and Biological Sciences

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“…Although the approach suggested by Greenhut et al (1995) is interesting, it does not provide satisfactory answers to basic oligopoly questions. The membership grades used in their examples are completely subjective and arguably arbitrary.…”

Section: A Fuzzy Approach To Oligopolistic Competitionmentioning

confidence: 99%

“…It is argued that quantiÞcation of real world setting in this manner will be of great help to these decision makers. Greenhut et al (1995) claim that an oligopoly can be described as competition among a few Þrms producing similar products. They use three different fuzzy sets to model the vague (italicized) linguistic terms in above the deÞnition of an oligopoly.…”

Section: A Fuzzy Approach To Oligopolistic Competitionmentioning

confidence: 99%

“…We also discuss two application of fuzzy sets to Industrial Organization. The Þrst by Greenhut, Greenhut and Mansur (1995) is an application to modelling a quantity setting oligopoly, and the second application due to Goodhue (1998) analyzes collusion through a fuzzy trigger strategy. We start with the two theoretical approaches followed by the applications.…”

Section: Review Of the Existing Literaturementioning

confidence: 99%

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Games in Fuzzy Environments

Aristidou¹,

Sarangi²

2006

Southern Economic Journal

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A noncooperative model of a normal form game is developed using tools from fuzzy set theory. The paper extends the decision theory framework of Bellman and Zadeh (1970) to a game-theoretic setting. We identify conditions for the existence of equilibrium in this setting and provide a duopoly example. The paper also provides a review of the existing literature on noncooperative fuzzy games and their applications. JEL Classification: C7, D8Keywords: Noncooperative games, Fuzzy sets. * We would like thank Hans Haller, Rob Gilles, two annonymous referees and the Editor for helpful suggestions. All errors, omissions and misinterpretations are our responsibility. AbstractA noncooperative model of a normal form game is developed using tools from fuzzy set theory. The paper extends the decision theory framework of Bellman and Zadeh (1970) to a game-theoretic setting. We identify conditions for the existence of equilibrium in this setting and provide a duopoly example. The paper also provides a review of the existing literature on noncooperative fuzzy games and their applications.

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“…The Ward's definition is generalized to the case of fuzzy duration by Greenhut at al. 3 Sheen generalizes the Ward's definition to the case of fuzzy interest rate 4 . Buckley, Gutierrez, Kuchta and Lesage discuss some problems connected with the application of fuzzy arithmetic for calculating fuzzy PV 5 .…”

Section: Introductionmentioning

confidence: 99%

Intuitionistic Assessment Of Behavioural Present Value^*

Piasecki

2014

Folia Oeconomica Stetinensia

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Oligopoly and behavioral uncertainty: An application of fuzzy set theory

Abstract: Oligopoly, uncertainty, fuzzy mathematics, Herfindahl-Hirschman, antitrust,

Cited by 15 publications

References 10 publications

Assessing of the Competitiveness Level in the Industry using the Correlation Analysis on the Example of Agriculture of the Republic of Tatarstan, Russian Federation

Assessing of the Competitiveness Level in the Industry using the Correlation Analysis on the Example of Agriculture of the Republic of Tatarstan, Russian Federation

Games in Fuzzy Environments

Intuitionistic Assessment Of Behavioural Present Value^*

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Oligopoly and behavioral uncertainty: An application of fuzzy set theory

Abstract: Oligopoly, uncertainty, fuzzy mathematics, Herfindahl-Hirschman, antitrust,

Cited by 15 publications

References 10 publications

Assessing of the Competitiveness Level in the Industry using the Correlation Analysis on the Example of Agriculture of the Republic of Tatarstan, Russian Federation

Assessing of the Competitiveness Level in the Industry using the Correlation Analysis on the Example of Agriculture of the Republic of Tatarstan, Russian Federation

Games in Fuzzy Environments

Intuitionistic Assessment Of Behavioural Present Value*

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Product

Resources

About

Intuitionistic Assessment Of Behavioural Present Value^*