Buyers' strategic money reports in markets lead to societal welfare loss.
The Fisher Game model explores how buyers with power can strategically manipulate their money reports for potential gains. This can impact social welfare, measured by the Price of Imperfect Competition (PoIC). For markets with certain utility functions, like Cobb-Douglas and linear, the PoIC is at least 1/2. The level of competition in the market affects the PoIC, with higher competition leading to higher PoIC for linear utility functions. Nash equilibria exist for Cobb-Douglas utilities but not necessarily for linear utilities, although good welfare guarantees can still be achieved through game dynamics.