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Cournot Equilibrium with Free Entry: The Case of Decreasing Average Cost Functions

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  • Yoshiaki Ushio

Abstract

This paper investigates, in the context of a market for a homogeneous commodity, the asymptotic properties of Cournot equilibria with free entry when the size of the market increases indefinitely. The analysis focuses on the case where the average cost function is always decreasing and the marginal cost function is non-decreasing for all sufficiently large outputs.

Suggested Citation

  • Yoshiaki Ushio, 1983. "Cournot Equilibrium with Free Entry: The Case of Decreasing Average Cost Functions," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 50(2), pages 347-354.
    • Handle: RePEc:oup:restud:v:50:y:1983:i:2:p:347-354.
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    File URL: http://hdl.handle.net/10.2307/2297420
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    Cited by:

    1. Ramon Villanova & Jaume Paradís & Pelegrí Viader & Joan Miralles, 2002. "Price increase and stability with new entries in Cournot markets," Economics Working Papers 646, Department of Economics and Business, Universitat Pompeu Fabra, revised Jan 2012.
    2. Corchón, Luis C., 2008. "Welfare losses under Cournot competition," International Journal of Industrial Organization, Elsevier, vol. 26(5), pages 1120-1131, September.
    3. Javier M. López-Cuñat, 1999. "One-stage and two-stage entry Cournot equilibria," Investigaciones Economicas, Fundación SEPI, vol. 23(1), pages 115-128, January.

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