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Oligopolistic competition with general complementarities

Author

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  • CALCIANO, Filippo L.

    (Université catholique de Louvain, CORE, Belgium and Department of Economics, University of Rome 3, Italy)

Abstract

In this paper we extend the basic model of Cournot competition to the case where both the demand function and the cost functions of each firm depend on the amounts produced by competitors. In this modified setting, proving existence of equilibria becomes harder. We develop a generalization of the theory of supermodular games in the context where individual decision variables take values in a totally ordered set to prove existence of equilibria in this generalized Cournot setting.

Suggested Citation

  • CALCIANO, Filippo L., 2011. "Oligopolistic competition with general complementarities," LIDAM Discussion Papers CORE 2011054, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE).
    • Handle: RePEc:cor:louvco:2011054
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    File URL: https://sites.uclouvain.be/core/publications/coredp/coredp2011.html
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    References listed on IDEAS

    as
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    More about this item

    Keywords

    Cournot oligopoly; complementarity; generalized modularity; generalized increasing differences; supermodular games;
    All these keywords.

    JEL classification:

    • C60 - Mathematical and Quantitative Methods - - Mathematical Methods; Programming Models; Mathematical and Simulation Modeling - - - General
    • C70 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - General
    • C72 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Noncooperative Games

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