The Road Less Travelled - Oligopoly and Competition Policy in General Equilibrium
AbstractI review previous approaches to modelling oligopoly in general equilibrium, and propose a new view which in principle overcomes their deficiencies: modelling firms as large in their own market but small in the economy as a whole. Implementing this approach requires a tractable specification of preferences. Dixit-Stiglitz preferences (which imply iso-elastic perceived demand functions) could be used, but "continuum-quadratic" preferences (which imply linear perceived demand functions) are more convenient. To illustrate their usefulness, I construct a simple closed-economy model of oligopoly in general equilibrium and derive some surprising implications for competition policy.
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 School Of Economics, University College Dublin in its series Working Papers with number 200222.
Length: 25 pages
Date of creation: 23 Sep 2002
Date of revision:
competition policy; Dixit-Stiglitz preferences; general equilibrium; GOLE (General Oligopolistic Equilibrium); oligopoly;
Find related papers by JEL classification:
- D50 - Microeconomics - - General Equilibrium and Disequilibrium - - - General
- L13 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Oligopoly and Other Imperfect Markets
- L40 - Industrial Organization - - Antitrust Issues and Policies - - - General
You can help add them by filling out this form.
CitEc Project, subscribe to its RSS feed for this item.
- J Peter Neary & Joe Tharakan, 2005.
"Endogenous Mode of Competition in General Equilibrium,"
200526, School Of Economics, University College Dublin.
- Neary, J Peter & Tharakan, Joe, 2006. "Endogenous Mode of Competition in General Equilibrium," CEPR Discussion Papers 5943, C.E.P.R. Discussion Papers.
- J Peter Neary, 2002.
"Globalisation and Market Structure,"
200220, School Of Economics, University College Dublin.
- Leahy, Dermot & Naghavi, Alireza, 2006.
"Intellectual Property Rights and Entry into a Foreign Market: FDI vs Joint Ventures,"
CEPR Discussion Papers
5672, C.E.P.R. Discussion Papers.
- Alireza Naghavi & Dermot Leahy, 2006. "Intellectual Property Rights and Entry into a Foreign Market: FDI vs. Joint Ventures," Working Papers 2006.97, Fondazione Eni Enrico Mattei.
- Alireza Naghavi & Dermot Leahy, 2008. "Intellectual Property Rights and North-South Joint Ventures," Center for Economic Research (RECent) 017, University of Modena and Reggio E., Dept. of Economics.
- Cosimo Beverelli & Kornel Mahlstein, 2011.
"Outsourcing and Competition Policy,"
Journal of Industry, Competition and Trade,
Springer, vol. 11(2), pages 131-147, June.
- Dirk Willenbockel, 2005. "The Price Normalisation Problem in General Equilibriun Models with Oligopoly Power: An Attempt at Perspective," GE, Growth, Math methods 0505002, EconWPA.
- Leopoldo Yanes, 2008. "R&D, Market Structure and Trade: A General Equilibrium Analysis," Discussion Papers Series 361, School of Economics, University of Queensland, Australia.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Nicolas Clifton).
If references are entirely missing, you can add them using this form.