A game-theory perspective on market cooperation

This paper contributes to the literature on market cooperation. It draws on influential works from this field in order to support the presentation of a theoretical model in conjunction with a mathematical formulation. The model represents a synthesis of the ideas and concepts discussed, and act as a focus for subsequent discussion. The mathematical formulation aims to shed light on the possibility that features of the interaction patterns in conjunction with prior exchange history may promote inter-firm cooperation. Non- cooperative game theory provides the theoretical foundation for the analysis. The mathematical formulation examines two different contexts: game with Perfect Monitoring and game with Imperfect Monitoring.