<p>Studying a situation where consumers and producers interact to set price is precisely the study of bargaining. Any game theory text you pick up will almost certainly cover bargaining. The text I learned from, which I enjoyed thoroughly was Osborne's <strong>an introduction to Game Theory</strong>. </p>

<p>A first example of a bargaining game would be <a href="https://en.m.wikipedia.org/wiki/Rubinstein_bargaining_model" rel="nofollow noreferrer">Rubinstein's game of alternating offers</a></p>

<p>I don't think adding consumer strategic behaviour to Cournot directly would be particularly more enlightening than studying bargaining separately, since Cournot already abstracts from the price setting mechanism.</p>

CC BY-SA 4.0
2019-04-22T11:09:24.797Z
2019-04-22T11:09:24.797Z
Xabu
<p>I am not familiar with economics but does anybody know any reference about cournot competition with strategic consumers? </p>

<p>In other words, is there any known competition where both producer and consumer can behave strategically and set the prices?</p>

CC BY-SA 4.0
2019-03-28T15:02:51.093Z
What's the strategic aspect that consumers would consider in your case?
BB King
CC BY-SA 4.0
2019-03-28T15:04:59.277Z
[Bargaining](http://stanford.edu/~alroth/barg.html)?
Herr K.
CC BY-SA 4.0
2019-03-28T16:38:50.273Z
@BB King For example conumers can decide on their demand to change the price
KSH
CC BY-SA 4.0
2019-04-02T09:35:35.500Z
@HerrK. As far as I know bargaining is a cooperative game. I am looking for a noncooperative game.
KSH
<reference-request><competition>
cournot competition with strategic consumers
KSH
# cournot competition with strategic consumers

(Asked by: username_0 on 2019-03-28)

I am not familiar with economics but does anybody know any reference about cournot competition with strategic consumers?

In other words, is there any known competition where both producer and consumer can behave strategically and set the prices?

**Tags:** reference-request, competition

> **Comments:**
> **username_1**: What's the strategic aspect that consumers would consider in your case?  
> **username_2**: [Bargaining](http://stanford.edu/~alroth/barg.html)?  
> **username_0**: @username_1 For example conumers can decide on their demand to change the price  
> **username_0**: @HerrK. As far as I know bargaining is a cooperative game. I am looking for a noncooperative game.  

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## 1 answers

### Answer by username_3 on 2019-04-22. Score: 1

Studying a situation where consumers and producers interact to set price is precisely the study of bargaining. Any game theory text you pick up will almost certainly cover bargaining. The text I learned from, which I enjoyed thoroughly was Osborne's **an introduction to Game Theory**.

A first example of a bargaining game would be [Rubinstein's game of alternating offers](https://en.m.wikipedia.org/wiki/Rubinstein_bargaining_model)

I don't think adding consumer strategic behaviour to Cournot directly would be particularly more enlightening than studying bargaining separately, since Cournot already abstracts from the price setting mechanism.


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