Imperfect competition à la Negishi, also with fixed costs
Abstract
The paper studies equilibria for economies with imperfect competition and non-convex technologies. Following Negishi, firms maximise profits under downward-sloping perceived demand functions. Negishi's assumptions, in particular the assumption of a single monopolistic competitor in each market, are relaxed. Existence of equilibria is obtained, under otherwisestandard assumptions, for productions sets defined in each firm by the union of a convex technology and a technology subject to fixed costs. In the light of a counterexample, it is assumed that fixed factors are distinct from variable factors. Technically, the proof rests on pricing rules.Download Info
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Paper provided by Université catholique de Louvain, Center for Operations Research and Econometrics (CORE) in its series CORE Discussion Papers with number 2002078.Length:
Date of creation: 00 Dec 2002
Date of revision:
Handle: RePEc:cor:louvco:2002078
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Related research
Keywords: imperfect competition; fixed costs; general equilibrium; perceived demand; pricing rules;Other versions of this item:
- Dehez, Pierre & Dreze, Jacques H. & Suzuki, Takashi, 2003. "Imperfect competition a la Negishi, also with fixed costs," Journal of Mathematical Economics, Elsevier, vol. 39(3-4), pages 219-237, June.
- Pïerre DEHEZ & Jacques H. DREZE & Takashi SUZUKI, 2002. "Imperfect Competition à la Negishi also with Fixed Costs," Discussion Papers (IRES - Institut de Recherches Economiques et Sociales) 2002044, Université catholique de Louvain, Institut de Recherches Economiques et Sociales (IRES).
- Pierre Dehez & Jacques Dreze & Takashi Suzuki, 2003. "Imperfect competition à la Negishi also with fixed costs," Microeconomics 0304003, EconWPA.
- D43 - Microeconomics - - Market Structure and Pricing - - - Oligopoly and Other Forms of Market Imperfection
- D51 - Microeconomics - - General Equilibrium and Disequilibrium - - - Exchange and Production Economies
- L13 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Oligopoly and Other Imperfect Markets
References
References listed on IDEASPlease report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Blanchard, Olivier Jean & Kiyotaki, Nobuhiro, 1987. "Monopolistic Competition and the Effects of Aggregate Demand," American Economic Review, American Economic Association, vol. 77(4), pages 647-66, September.
- Bonnisseau, Jean-Marc & Cornet, Bernard, 1988.
"Existence of equilibria when firms follow bounded losses pricing rules,"
Journal of Mathematical Economics,
Elsevier, vol. 17(2-3), pages 119-147, April.
- Bonnisseau, J.-M. & Cornet, B., 1986. "Existence of equilibria when firms follow bounded losses pricing rules," CORE Discussion Papers 1986007, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE).
Citations
Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.Cited by:
- DREZE, Jacques H. & HERINGS, P. Jean-Jacques, 2007.
"Kinky perceived demand curves and Keynes-Negishi equilibria,"
CORE Discussion Papers
2007075, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE).
- Jacques H. Drèze & P. Jean-Jacques Herings, 2008. "Kinky perceived demand curves and Keynes-Negishi equilibria," International Journal of Economic Theory, The International Society for Economic Theory, vol. 4(2), pages 207-246.
- Jacques H., DREZE & Jean-Jacques, HERINGS, 2007. "Kinky perceived demand curves and Keynes-Negishi equilibria," Discussion Papers (ECON - Département des Sciences Economiques) 2007037, Université catholique de Louvain, Département des Sciences Economiques.
- Drèze, Jacques H. & Herings, P. Jean-Jacques, 2007. "Kinky Perceived Demand Curves and Keynes-Negishi Equilibria," Research Memoranda 035, Maastricht : METEOR, Maastricht Research School of Economics of Technology and Organization.
- Weinrich, Gerd, 2007. "New Keynesian monopolistic competition and objective demand," Journal of Mathematical Economics, Elsevier, vol. 43(2), pages 153-173, February.
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