Market Power, Coordination Failures and Endogenous Fluctuations
AbstractvVe analyse an overlapping generations economy with Cournotian monopolistic competition in the produced goods markets and perfect competition in the labour market. All prices are perfectly flexible and no adjustments costs are introduced. We show that these features lead to properties qualitatively different from those obtained when all markets are perfectly competitive. First there is a possibility of multiple Pareto-ranked temporary or stationary equilibria. Second, a preliminary analysis of the intertemporal equilibria shows that imperfect competition opens up new possibilities of endogenous fluctuations, and may lead to non-monotonicity of all equilibria in prices and output. These results are essentially based on two features, naturally associated with imperfect competition, increasing returns to scale and the variability of oligopolistic market power as a consequence of the variability of demand elasticity.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
Bibliographic InfoPaper provided by Université catholique de Louvain, Center for Operations Research and Econometrics (CORE) in its series CORE Discussion Papers with number 1994068.
Date of creation: 01 Dec 1994
Date of revision:
Contact details of provider:
Postal: Voie du Roman Pays 34, 1348 Louvain-la-Neuve (Belgium)
Fax: +32 10474304
Web page: http://www.uclouvain.be/core
More information through EDIRC
You can help add them by filling out this form.
CitEc Project, subscribe to its RSS feed for this item.
- Brito, Paulo & Costa, Luís F. & Dixon, Huw David, 2008.
"Non-smooth Dynamics and Multiple Equilibria in a Cournot-Ramsey Model with Endogenous Markups,"
Cardiff Economics Working Papers
E2008/21, Cardiff University, Cardiff Business School, Economics Section, revised Jul 2010.
- Brito, Paulo B. & Costa, Luís F. & Dixon, Huw, 2013. "Non-smooth dynamics and multiple equilibria in a Cournot–Ramsey model with endogenous markups," Journal of Economic Dynamics and Control, Elsevier, vol. 37(11), pages 2287-2306.
- Paulo Brito & Luís Costa & Huw Dixon, 2010. "Non-Smooth Dynamics and Multiple Equilibria in a Cournt-Ramsey Model with Endogenous Markups," Working Papers Department of Economics 2010/14, ISEG - School of Economics and Management, Department of Economics, University of Lisbon.
- Coimbra, Rui & Lloyd-Braga, Teresa & Modesto, Leonor, 2002. "Endogenous Growth Fluctuations in Unionised Economy with Productive Externalities," CEPR Discussion Papers 3230, C.E.P.R. Discussion Papers.
- repec:hal:cesptp:halshs-00266713 is not listed on IDEAS
- Pasquale Commendatore & Ingrid Kubin, 2009.
"Dynamic effects of regulation and deregulation in goods and labour markets,"
Oxford Economic Papers,
Oxford University Press, vol. 61(3), pages 517-537, July.
- Pasquale Commendatore & Ingrid Kubin, 2005. "Dynamic Effects of Regulation and Deregulation in Goods and Labour Markets," Working Papers geewp49, Vienna University of Economics Research Group: Growth and Employment in Europe: Sustainability and Competitiveness.
- Paulo Brito & Luis Costa & Huw Dixon, 2007. "Business Cycles with Endogenous Mark-ups," Money Macro and Finance (MMF) Research Group Conference 2006 108, Money Macro and Finance Research Group.
- Guido Cazzavillan & Patrick Pintus, 2006.
"Endogenous Business Cycles and Dynamic Inefficiency,"
2006_37, Department of Economics, University of Venice "Ca' Foscari".
- Guido Cazzavillan & Patrick A. Pintus, 2006. "Endogenous business cycles and dynamic inefficiency," International Journal of Economic Theory, The International Society for Economic Theory, vol. 2(3-4), pages 279-294.
- Bosi, Stefano & Seegmuller, Thomas, 2008.
"Can heterogeneous preferences stabilize endogenous fluctuations,"
Journal of Economic Dynamics and Control,
Elsevier, vol. 32(2), pages 624-647, February.
- Stefano Bosi & Thomas Seegmuller, 2006. "Can heterogeneous preferences stabilize endogenous fluctuations ?," Cahiers de la Maison des Sciences Economiques v06082, Université Panthéon-Sorbonne (Paris 1).
- Marta Aloi & Huw D. Dixon & Teresa Lloyd-Braga, 1998.
"Endogenous Fluctuations In an Open Economy with Increasing Returns to Scale,"
98-03, University of Copenhagen. Department of Economics.
- Aloi, Marta & Dixon, Huw D. & Lloyd-Braga, Teresa, 2000. "Endogenous fluctuations in an open economy with increasing returns to scale," Journal of Economic Dynamics and Control, Elsevier, vol. 24(1), pages 97-125, January.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Alain GILLIS).
If references are entirely missing, you can add them using this form.