On Cournot-Nash Equilibria with Exogenous Uncertainty
AbstractA large literature has accumulated which examines how the optimal solution of an agent maximising the expectations of a real-valued function depending on a rendom parameter p and the agents's behaviour x reacts to pertubations in the first and second moments of p. In this literature p is given exogenously, i.e. independent of x. We extend the theory in two aspects. First we allow there to be many agents and broaden our attention to regard market behaviour. Second, we allow p to depend on the behaviours of the participating agents, for example when p is a price vector relevant to an oligopoly. The method used is an extension of Ireland (2), in that an analogy is made between the effects on behaviour of uncertainty in p and the effects of a change in p. We study, in particular, the Cournot solution with respect to pertubations in the first two moments of two types of parameter defining a linear demand for industry - one parameter corresponding to ordinate intercept and the other to slope. This analysis immediately gives the old results as a corollary. We also apply the analysis to a cooperative of individuals where there is uncertainty in the return to communal work. In the applications we study the kind of simplifying assumptions necessary and the nature of the results.
Download InfoTo our knowledge, this item is not available for download. To find whether it is available, there are three options:
1. Check below under "Related research" whether another version of this item is available online.
2. Check on the provider's web page whether it is in fact available.
3. Perform a search for a similarly titled item that would be available.
Bibliographic InfoPaper provided by University of Warwick, Department of Economics in its series The Warwick Economics Research Paper Series (TWERPS) with number 210.
Length: 32 pages
Date of creation: 1982
Date of revision:
You can help add them by filling out this form.
reading list or among the top items on IDEAS.Access and download statisticsgeneral information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Helen Neal).
If references are entirely missing, you can add them using this form.