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Perfect competition and increasing returns A partial equilibrium analysis

Author

Listed:
  • Dehez, Pierre

    (Université catholique de Louvain, LIDAM/CORE, Belgium)

  • Drèze, Jacques

    (Université catholique de Louvain, LIDAM/CORE, Belgium)

Abstract

The purpose of the present paper is to challenge the standard textbook analysis of perfect competition based on profit maximisation and the associated "price equal marginal cost" rule leading to an increasing market supply curve.

Suggested Citation

  • Dehez, Pierre & Drèze, Jacques, 2026. "Perfect competition and increasing returns A partial equilibrium analysis," LIDAM Discussion Papers CORE 2026002, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE).
    • Handle: RePEc:cor:louvco:2026002
    as

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    References listed on IDEAS

    as
    1. Dehez, Pierre & Dreze, Jacques H. & Suzuki, Takashi, 2003. "Imperfect competition a la Negishi, also with fixed costs," Journal of Mathematical Economics, Elsevier, vol. 39(3-4), pages 219-237, June.
    2. Dehez, Pierre & Dreze, Jacques, 1988. "Competitive equilibria with quantity-taking producers and increasing returns to scale," Journal of Mathematical Economics, Elsevier, vol. 17(2-3), pages 209-230, April.
    3. Negishi,Takashi, 1985. "Economic Theories in a Non-Walrasian Tradition," Cambridge Books, Cambridge University Press, number 9780521259675, November.
    4. Dehez, Pierre & Ginsburgh, Victor, 2022. "The Assembly Line or the Fat Capitalist : A Mexican Tale by B. Traven," LIDAM Discussion Papers CORE 2022014, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE).
    5. Takashi Negishi, 1961. "Monopolistic Competition and General Equilibrium," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 28(3), pages 196-201.
    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

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    JEL classification:

    • D21 - Microeconomics - - Production and Organizations - - - Firm Behavior: Theory
    • D41 - Microeconomics - - Market Structure, Pricing, and Design - - - Perfect Competition

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