Reconsidering Cournot: The Cournot Equilibrium is Consistent
This article uses an infinite-regress model of firm-level decisions to find a rational expectations equilibrium for a duopoly and to relate concepts of conjectural variations and consistency to the Cournot equilibrium. The model derives a conjectural variation instead of assuming it. In particular, the Cournot equilibrium is shown to be consistent in the usual sense of the literature. The conflict between notions of consistent conjectures and the Cournot equilibrium results from a compounding problem inherent in the earlier models. We extend these results to the n-firm problem. Alternatively, the article can be viewed as providing a purely static model that generates the Cournot equilibrium without reference to conjectures or quasi dynamics.
If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
As the access to this document is restricted, you may want to look for a different version under "Related research" (further below) or search for a different version of it.
Volume (Year): 16 (1985)
Issue (Month): 3 (Autumn)
|Contact details of provider:|| Web page: http://www.rje.org|
|Order Information:||Web: https://editorialexpress.com/cgi-bin/rje_online.cgi|
When requesting a correction, please mention this item's handle: RePEc:rje:randje:v:16:y:1985:i:autumn:p:368-379. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: ()
If references are entirely missing, you can add them using this form.