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Atomic Leontievian Cournotian traders are always Walrasian

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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 Cournot-Nash allocation is a Walras allocation and, consequently, it is Pareto optimal.

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  • 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.
    • Handle: RePEc:eee:gamebe:v:122:y:2020:i:c:p:318-327
    DOI: 10.1016/j.geb.2020.05.004
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    5. Francesca Busetto & Giulio Codognato & Sayantan Ghosal & Ludovic Julien & Simone Tonin, 2020. "Existence and optimality of Cournot–Nash equilibria in a bilateral oligopoly with atoms and an atomless part," International Journal of Game Theory, Springer;Game Theory Society, vol. 49(4), pages 933-951, December.
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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.
    2. Busetto, Francesca & Codognato, Giulio & Julien, Ludovic, 2021. "Atomic Leontievian Walrasian traders are always Cournotian," Economics Letters, Elsevier, vol. 207(C).

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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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