Fuzzy cooperative behavior in response to market imperfections

✍ Scribed by Maria Gabriella Graziano

• Publisher: John Wiley and Sons
• Year: 2011
• Tongue: English
• Weight: 159 KB
• Volume: 27
• Category: Article
• ISSN: 0884-8173
• DOI: 10.1002/int.21516

✦ Synopsis

Real markets offer economists several occasions for investigating deviations from the perfect competition scheme. We present some problems arising in consumer theory when deviations are determined by the presence of large traders (monopolies, oligopolies) and/or public goods, and/or uncertainty about possible states of nature on which agents are asymmetrically informed. In all of these cases, considering fuzzy cooperative behavior within a coalition of agents provides cooperative solutions to restore classical results. C 2011 Wiley Periodicals, Inc.

1. the presence of large traders (i.e., monopolies or oligopolies), 2. the influence of decisions concerning public expenditure on private individual choices, and 3. uncertainty and informational asymmetry.

These represent only some examples of deviations from the assumptions that are implicit or explicit in the competitive equilibrium model. However, we shall see that, in all these cases, results connecting cooperative and noncooperative solutions can be restored, assuming a fuzzy cooperative behavior within a coalition of agents. This is the text of the author's talk given on the occasion of the Fifth Meeting on