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Differential bargaining games as microfoundations for production functions

P. 289–300.
Matveenko V.

In the present paper the game theory is applied to an important open question in economics: providing microfoundations for often-used types of production function. Simple differential games of bargaining are proposed to model a behavior of workers and capital-owners in processes of formation of a set of admissible factor prices or participants’ weights (moral-ethical assessments). These games result, correspondingly, in a factor price curve and a weight curve – structures dual to production function. Ultimately, under constant bargaining powers of the participants, the Cobb-Douglas production function is received.

Language: English
Full text
Keywords: дифференциальные игрысделкипроизводственная функцияproduction functionФакторы производстваproduction factorschoice of technologybargainingdifferential gamesdualityвыбор технологиидвойственность

In book

Contributions to game theory and management
Contributions to game theory and management
Issue 6. , St. Petersburg: Graduate School of Management, St. Petersburg University, 2013.
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