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A note on price-taking and price-making behaviours in general equilibrium oligopoly models

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Author Info
Ludovic Julien () (EconomiX - CNRS : UMR7166 - Université de Paris X - Nanterre)
Fabrice Tricou (EconomiX - CNRS : UMR7166 - Université de Paris X - Nanterre)

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Abstract

This paper explores the rationale of price-taking and price-making behaviours in the context of Walrasian and Cournotian pure exchange economies. Beside the influence of the number of agents, we underline the role of the structure of preferences. Through three equilibrium variations of the same basic economy, we obtain several results about price manipulation, about asymptotic identifications for large economies and for degenerate preferences, and about welfare comparisons. Perfect competition does not only correspond to the case of large economies, but may also concern economies where market powers are more or less equivalent.

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Paper provided by HAL in its series Working Papers with number halshs-00088012_v3.

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Date of creation: 28 Jul 2006
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Handle: RePEc:hal:wpaper:halshs-00088012_v3

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Related research
Keywords: Cournot-Walras equilibria; market power; perfect competition;

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