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Exploiting separability in a multisectoral model of oligopolistic competition

Author

Listed:
  • d’ASPREMONT Claude,

    (Université catholique de Louvain, CORE, Belgium)

  • DOS SANTOS FERREIRA Rodolphe,

    (BETA, Université de Strasbourg)

Abstract

The paper uses the most general version of a Dixit-Stiglitz economy and the concept of oligopolistic equilibrium, defined in previous work, with firms maximizing profits in prices and quantities under a market share and a market size constraint. The purpose here is to take even more advantage of separability so as to partition the oligopolistic sector into groups. Weak separability simplifies quantity conjectures and homothetic separability simplifies price conjectures. Oligopolistic equilibria can in addition be approximated by introducing group expenditure conjectures. Finally, the way different groups interact within the same industry is illustrated within the same framework.

Suggested Citation

  • d’ASPREMONT Claude, & DOS SANTOS FERREIRA Rodolphe,, 2020. "Exploiting separability in a multisectoral model of oligopolistic competition," LIDAM Discussion Papers CORE 2020009, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE).
    • Handle: RePEc:cor:louvco:2020009
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    Cited by:

    1. Ronald R. Kumar & Peter J. Stauvermann, 2020. "Economic and Social Sustainability: The Influence of Oligopolies on Inequality and Growth," Sustainability, MDPI, vol. 12(22), pages 1-23, November.

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    Keywords

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    JEL classification:

    • D43 - Microeconomics - - Market Structure, Pricing, and Design - - - Oligopoly and Other Forms of Market Imperfection
    • D51 - Microeconomics - - General Equilibrium and Disequilibrium - - - Exchange and Production Economies
    • L13 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Oligopoly and Other Imperfect Markets

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