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Consistent conjectural variations equilibria in strategic multilateral exchange

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  • Ludovic JULIEN

    (EconomiX, Université Paris Ouest-Nanterre La Défense)

Abstract

In this note, we address the problem of determining which conjectural variations general equilibria are consistent in strategic multilateral exchange. We therefore consider expectations in a simple conjectural general equilibrium model of a pure exchange economy under strategic interactions. Three results are obtained. Firstly, the competitive equilibrium is a locally consistent conjectural general equilibrium. Secondly, the symmetric Cournot oligopoly equilibrium is not a locally consistent conjectural general equilibrium. Thirdly, the symmetric collusive equilibrium is a locally consistent conjectural general equilibrium.

Suggested Citation

  • Ludovic JULIEN, 2009. "Consistent conjectural variations equilibria in strategic multilateral exchange," Economics Bulletin, AccessEcon, vol. 29(1), pages 465-473.
    • Handle: RePEc:ebl:ecbull:eb-08d40041
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    References listed on IDEAS

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    2. Busetto, Francesca & Codognato, Giulio & Ghosal, Syantan, 2008. "Cournot-Walras Equilibrium as a Subgame Perfect Equilibrium," Economic Research Papers 269786, University of Warwick - Department of Economics.
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    5. Bresnahan, Timothy F, 1981. "Duopoly Models with Consistent Conjectures," American Economic Review, American Economic Association, vol. 71(5), pages 934-945, December.
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    More about this item

    JEL classification:

    • D4 - Microeconomics - - Market Structure, Pricing, and Design
    • D5 - Microeconomics - - General Equilibrium and Disequilibrium

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