Imperfect competition à la Negishi, also with fixed costs
The paper studies equilibria for economies with imperfect competition and non-convex technologies. Following Negishi, firms maximise profits under downward-sloping perceived demand functions. Negishi's assumptions, in particular the assumption of a single monopolistic competitor in each market, are relaxed. Existence of equilibria is obtained, under otherwisestandard assumptions, for productions sets defined in each firm by the union of a convex technology and a technology subject to fixed costs. In the light of a counterexample, it is assumed that fixed factors are distinct from variable factors. Technically, the proof rests on pricing rules.
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- Bonnisseau, Jean-Marc & Cornet, Bernard, 1988.
"Existence of equilibria when firms follow bounded losses pricing rules,"
Journal of Mathematical Economics,
Elsevier, vol. 17(2-3), pages 119-147, April.
- BONNISSEAU, Jean-Marc & CORNET, Bernard, . "Existence of equilibria when firms follow bounded losses pricing rules," CORE Discussion Papers RP -814, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE).
- Bonnisseau, J.-M. & Cornet, B., 1986. "Existence of equilibria when firms follow bounded losses pricing rules," CORE Discussion Papers 1986007, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE).
- Blanchard, Olivier Jean & Kiyotaki, Nobuhiro, 1987. "Monopolistic Competition and the Effects of Aggregate Demand," American Economic Review, American Economic Association, vol. 77(4), pages 647-66, September.
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