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N-Firm Oligopoly With General Iso-Elastic Demand

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  • Rodney Beard

Abstract

type="main"> In this note oligopoly with iso-elastic demand is analysed. Unlike previous studies we consider general iso-elastic demand rather than the case of unit elasticity. An n-firm Nash-Cournot equilibrium for the case of heterogeneous constant marginal costs is derived. The main result is a closed-form solution that shows the dependency of the equilibrium on the elasticity of demand and the share of industry costs. The result has applications to a wide range of areas in oligopoly theory by allowing comparisons across markets with different elasticities of demand.

Suggested Citation

  • Rodney Beard, 2015. "N-Firm Oligopoly With General Iso-Elastic Demand," Bulletin of Economic Research, Wiley Blackwell, vol. 67(4), pages 336-345, October.
    • Handle: RePEc:bla:buecrs:v:67:y:2015:i:4:p:336-345
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    References listed on IDEAS

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    Cited by:

    1. Kamei, Keita, 2014. "International Trade, Unemployment, and Firm Owners in a General Equilibrium with Oligopoly," MPRA Paper 59388, University Library of Munich, Germany.
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    3. Maxime C. Cohen & Ruben Lobel & Georgia Perakis, 2016. "The Impact of Demand Uncertainty on Consumer Subsidies for Green Technology Adoption," Management Science, INFORMS, vol. 62(5), pages 1235-1258, May.
    4. Domenico De Giovanni & Fabio Lamantia, 2017. "Evolutionary dynamics of a duopoly game with strategic delegation and isoelastic demand," Journal of Evolutionary Economics, Springer, vol. 27(5), pages 877-903, November.
    5. Fabio Tramontana, 2013. "Information exchange in a Cournot duopoly with nonlinear demand function," DEM Working Papers Series 049, University of Pavia, Department of Economics and Management.

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