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Conjectural variations and general oligopoly equilibrium in pure exchange economies

Author

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  • Ludovic Alexandre JULIEN

    (EconomiX, University of Paris X-Nanterre)

Abstract

In this note, we introduce conjectural variations in a simple general oligopoly equilibrium model of a pure exchange economy. Three results are obtained. First, the price and utility levels generally increase with the value taken by conjectures. Second, when the conjectural variation takes its minimum value the competitive equilibrium is reached, independently of the number of agents acting in each sector. Third, the Cournot-Walras equilibrium may be viewed as a case where the conjectural variations in one sector take a zero value.

Suggested Citation

  • Ludovic Alexandre JULIEN, 2006. "Conjectural variations and general oligopoly equilibrium in pure exchange economies," Economics Bulletin, AccessEcon, vol. 4(39), pages 1-6.
    • Handle: RePEc:ebl:ecbull:eb-06d40016
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    References listed on IDEAS

    as
    1. Codognato, Giulio & Gabszewicz, Jean J, 1993. "Cournot-Walras Equilibria in Markets with a Continuum of Traders," Economic Theory, Springer;Society for the Advancement of Economic Theory (SAET), vol. 3(3), pages 453-464, July.
    2. Bresnahan, Timothy F, 1981. "Duopoly Models with Consistent Conjectures," American Economic Review, American Economic Association, vol. 71(5), pages 934-945, December.
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    Cited by:

    1. Ludovic A. Julien, 2010. "From Imperfect To Perfect Competition: A Parametric Approach Through Conjectural Variations," Manchester School, University of Manchester, vol. 78(6), pages 660-677, December.

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    More about this item

    Keywords

    Cournot-Walras equilibria;

    JEL classification:

    • D4 - Microeconomics - - Market Structure, Pricing, and Design
    • D5 - Microeconomics - - General Equilibrium and Disequilibrium

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