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From Imperfect To Perfect Competition: A Parametric Approach Through Conjectural Variations

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  • LUDOVIC A. JULIEN

Abstract

This paper features perfect competition under a parametric approach. We consider conjectural variations in a pure exchange economy where strategic interactions hold. We show, through an example, that the conjectural general equilibrium can coincide with the competitive equilibrium, independently of a replication procedure or an asymptotic identification. Additionally, the competitive equilibrium is a locally consistent conjectural general equilibrium. Perfect competition is defined at equilibrium. Copyright © 2010 The Author. The Manchester School © 2010 Blackwell Publishing Ltd and The University of Manchester.

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  • Ludovic A. Julien, 2010. "From Imperfect To Perfect Competition: A Parametric Approach Through Conjectural Variations," Manchester School, University of Manchester, vol. 78(6), pages 660-677, December.
  • Handle: RePEc:bla:manchs:v:78:y:2010:i:6:p:660-677
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