Advanced Search
MyIDEAS: Login to save this paper or follow this series

Cournot-Walras Equilibrium as a Subgame Perfect Equilibrium

Contents:

Author Info

  • Busetto, Francesca

    (University of Udine)

  • Codognato, Giulio

    (University of Udine)

  • Ghosal, Sayantan

    (Department of Economics, University of Warwick)

Abstract

In this paper, we investigate the problem of the strategic foundation of the Cournot-Walras equilibrium approach. To this end, we respecify a'la Cournot-Walras the mixed version of a model of simultaneous, noncooperative exchange, originally proposed by Lloyd S.Shapley. We show, through an example, that the set of the Cournot-Walras equilibrium allocations of this respecification does not coincide with the set of the Cournot-Nash equilibrium allocations of the mixed version of the original Shapley's model. As the nonequivalence, in a one-stage setting, can be explained by the intrinsic two-stage nature of the Cournot-Walras equilibrium concept, we are led to consider a further reformulation of the Shapley's model as a two-stage game, where the atoms move in the first stage and the atomless sector moves in the second stage. Our main result shows that the set of the Cournot-Walras equilibrium allocations coincides with a specific set of subgame perfect equilibrium allocations of this two-stage game, which we call the set of the Pseudo-Markov perfect equilibrium allocations.

Download Info

If 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.
File URL: http://www2.warwick.ac.uk/fac/soc/economics/research/workingpapers/2008/twerp_837.pdf
Download Restriction: no

Bibliographic Info

Paper provided by University of Warwick, Department of Economics in its series The Warwick Economics Research Paper Series (TWERPS) with number 837.

as in new window
Length: 23 pages
Date of creation: 2008
Date of revision:
Handle: RePEc:wrk:warwec:837

Contact details of provider:
Postal: CV4 7AL COVENTRY
Phone: +44 (0) 2476 523202
Fax: +44 (0) 2476 523032
Web page: http://www2.warwick.ac.uk/fac/soc/economics/
More information through EDIRC

Related research

Keywords:

Find related papers by JEL classification:

This paper has been announced in the following NEP Reports:

References

No references listed on IDEAS
You can help add them by filling out this form.

Citations

Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
as in new window

Cited by:
  1. Julien, Ludovic A., 2011. "Unemployment equilibrium and economic policy in mixed markets," Economic Modelling, Elsevier, vol. 28(4), pages 1931-1940, July.
  2. Ludovic A. Julien & Fabrice Tricou, 2010. "Oligopoly Equilibria “à la Stackelberg” in Pure Exchange Economies," Discussion Papers (REL - Recherches Economiques de Louvain) 2010023, Université catholique de Louvain, Institut de Recherches Economiques et Sociales (IRES).
  3. Alex Dickson & Roger Hartley, 2013. "Bilateral oligopoly and quantity competition," Economic Theory, Springer, vol. 52(3), pages 979-1004, April.
  4. Ludovic JULIEN, 2009. "Consistent conjectural variations equilibria in strategic multilateral exchange," Economics Bulletin, AccessEcon, vol. 29(1), pages 465-473.
  5. Julien, Ludovic A., 2009. "Conjectural variations, symmetric equilibria and economic policy," Economic Modelling, Elsevier, vol. 26(5), pages 1115-1120, September.
  6. Dickson Alex, 2013. "Cobb-Douglas preferences in bilateral oligopoly," Working Papers 1306, University of Strathclyde Business School, Department of Economics.
  7. Julien, Ludovic A., 2013. "On Stackelberg competition in strategic multilateral exchange," Research in Economics, Elsevier, vol. 67(1), pages 59-75.
  8. Busetto, Francesca & Codognato, Giulio & Ghosal, Sayantan, 2008. "Noncooperative Oligopoly in Markets with a Continuum of Traders," The Warwick Economics Research Paper Series (TWERPS) 866, University of Warwick, Department of Economics.
  9. David Mayer-Foulkes, 2011. "Vulnerable Markets," DEGIT Conference Papers c016_040, DEGIT, Dynamics, Economic Growth, and International Trade.
  10. Francesca Busetto & Giulio Codognato & Sayantan Ghosal, . "Noncooperative oligopoly in markets with a continuum of traders: a limit theorem a la Cournot," Working Papers 2014_01, Business School - Economics, University of Glasgow.

Lists

This item is not listed on Wikipedia, on a reading list or among the top items on IDEAS.

Statistics

Access and download statistics

Corrections

When requesting a correction, please mention this item's handle: RePEc:wrk:warwec:837. See general 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 you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

If references are entirely missing, you can add them using this form.

If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.

If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.

Please note that corrections may take a couple of weeks to filter through the various RePEc services.