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Existence and computation of a Cournot-Walras equilibrium

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  • Esteban-Bravo, Mercedes

Abstract

In this paper we present a general approach to existence problems in Cournot-Walras (CW) economies, based on mathematical programming theory. We propose a definition of the decision problem of firms which avoids the profit maximization rule as the only rational criterion for the firms and uses the excess demand function instead of the inverse demand function. We prove the existence of a CW equilibrium and we state practical conditions to characterize a CW equilibrium. We also propose efficient algorithms for computing CW equilibria. Finally, we consider some extensions such as externalities, Stackelberg, collusive and Nash equilibrium models

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  • Esteban-Bravo, Mercedes, 2000. "Existence and computation of a Cournot-Walras equilibrium," DES - Working Papers. Statistics and Econometrics. WS 9968, Universidad Carlos III de Madrid. Departamento de Estadística.
    • Handle: RePEc:cte:wsrepe:9968
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