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External conjectural variations in symmetric oligopoly equilibrium

Author

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  • Ludovic Alexandre JULIEN

    (EconomiX, University of Paris X-Nanterre)

Abstract

In this paper, we introduce the concept of conjectural variations across sectors called "external conjectural variations" in a pure exchange economy. Three results are obtained. First, the symmetric oligopoly equilibrium coincides with the Cournot equilibrium when the conjectural variations are zero. Second, the symmetric oligopoly equilibrium coincides with the competitive equilibrium when the conjectural variations take the value of the competitive market equilibrium price. Third, the optimal strategies of agents between sectors are complements (substitutes) when the conjectural variation is negative (positive).

Suggested Citation

  • Ludovic Alexandre JULIEN, 2007. "External conjectural variations in symmetric oligopoly equilibrium," Economics Bulletin, AccessEcon, vol. 4(44), pages 1-6.
    • Handle: RePEc:ebl:ecbull:eb-07d40007
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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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    More about this item

    Keywords

    External conjectural variations;

    JEL classification:

    • D4 - Microeconomics - - Market Structure, Pricing, and Design

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