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Atomic Leontievian Walrasian traders are always Cournotian

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  • Busetto, Francesca
  • Codognato, Giulio
  • Julien, Ludovic

Abstract

We consider a bilateral oligopoly version of the Shapley window model with large traders, represented as atoms, and small traders, represented by an atomless part. For this model, we show that, when atoms have Leontievian utility functions, any Walras allocation is a Cournot–Nash allocation. This result, together with the main theorem proved in Busetto et al. (2020), implies the equivalence between the set of Cournot–Nash allocations and the set of Walras allocations.

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  • Busetto, Francesca & Codognato, Giulio & Julien, Ludovic, 2021. "Atomic Leontievian Walrasian traders are always Cournotian," Economics Letters, Elsevier, vol. 207(C).
    • Handle: RePEc:eee:ecolet:v:207:y:2021:i:c:s0165176521003207
    DOI: 10.1016/j.econlet.2021.110043
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    References listed on IDEAS

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    4. Busetto, Francesca & Codognato, Giulio & Julien, Ludovic, 2020. "Atomic Leontievian Cournotian traders are always Walrasian," Games and Economic Behavior, Elsevier, vol. 122(C), pages 318-327.
    5. Codognato, Giulio & Ghosal, Sayantan, 2000. "Cournot-Nash equilibria in limit exchange economies with complete markets and consistent prices," Journal of Mathematical Economics, Elsevier, vol. 34(1), pages 39-53, August.
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    Cited by:

    1. Francesca Busetto & Giulio Codognato & Giorgia Pavan & Simone Tonin, 2023. "Cournotian duopolistic firms may be Walrasian: a case in the Gabszewicz and Vial model," Journal of Economics, Springer, vol. 140(2), pages 121-140, October.

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    More about this item

    Keywords

    Cournot–Nash equilibrium; Walras equilibrium; Leontievian preferences;
    All these keywords.

    JEL classification:

    • C72 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Noncooperative Games
    • D43 - Microeconomics - - Market Structure, Pricing, and Design - - - Oligopoly and Other Forms of Market Imperfection
    • D51 - Microeconomics - - General Equilibrium and Disequilibrium - - - Exchange and Production Economies

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