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Quasi-competitiveness in the Cournot model with heterogeneous firms

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  • Uchiyama, Takashi

Abstract

In the framework of Cournot oligopoly with heterogeneous firms, under conditions weaker than the commonly accepted ones, this paper provides (i) a proof that the equilibrium price (total output) does not increase (decrease) as the number of firms in the industry increases, and (ii) a necessary and sufficient condition for entry to strictly lower the equilibrium price.

Suggested Citation

  • Uchiyama, Takashi, 2018. "Quasi-competitiveness in the Cournot model with heterogeneous firms," Economics Letters, Elsevier, vol. 165(C), pages 62-64.
  • Handle: RePEc:eee:ecolet:v:165:y:2018:i:c:p:62-64
    DOI: 10.1016/j.econlet.2018.02.006
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    References listed on IDEAS

    as
    1. Rabah Amir & Val E. Lambson, 2000. "On the Effects of Entry in Cournot Markets," Review of Economic Studies, Oxford University Press, vol. 67(2), pages 235-254.
    2. Charles R. Frank, 1965. "Entry in a Cournot Market," Review of Economic Studies, Oxford University Press, vol. 32(3), pages 245-250.
    3. Seade, Jesus K, 1980. "On the Effects of Entry," Econometrica, Econometric Society, vol. 48(2), pages 479-489, March.
    4. R. J. Ruffin, 1971. "Cournot Oligopoly and Competitive Behaviour," Review of Economic Studies, Oxford University Press, vol. 38(4), pages 493-502.
    5. F. H. Hahn, 1962. "The Stability of the Cournot Oligopoly Solution," Review of Economic Studies, Oxford University Press, vol. 29(4), pages 329-331.
    6. Koji Okuguchi, 1973. "Quasi-Competitiveness and Cournot Oligopoly," Review of Economic Studies, Oxford University Press, vol. 40(1), pages 145-148.
    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    Cournot model; Heterogeneous firms; Quasi-competitiveness;
    All these keywords.

    JEL classification:

    • D43 - Microeconomics - - Market Structure, Pricing, and Design - - - Oligopoly and Other Forms of Market Imperfection
    • L13 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Oligopoly and Other Imperfect Markets

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