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Aggregation with Cournot Competition: An Empirical Investigation

Author

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  • Bertrand Koebel

    (BETA - Bureau d'Économie Théorique et Appliquée - INRA - Institut National de la Recherche Agronomique - UNISTRA - Université de Strasbourg - UL - Université de Lorraine - CNRS - Centre National de la Recherche Scientifique)

  • Francois Laisney

    (BETA - Bureau d'Économie Théorique et Appliquée - INRA - Institut National de la Recherche Agronomique - UNISTRA - Université de Strasbourg - UL - Université de Lorraine - CNRS - Centre National de la Recherche Scientifique)

Abstract

This paper empirically investigates the existence of Cournot equilibrium and the validity of the Le Chatelier-Samuelson (LCS) principle in the aggregate. Whereas two well known existence conditions are statistically rejected, we cannot reject a third, original, condition. We also find some empirical evidence for the LCS principle, as well as both increasing and constant returns to scale for two-digit US manufacturing industries. The results highlight the importance of imperfect competition for understanding aggregate growth, investment and employment.

Suggested Citation

  • Bertrand Koebel & Francois Laisney, 2016. "Aggregation with Cournot Competition: An Empirical Investigation," Post-Print hal-01721823, HAL.
    • Handle: RePEc:hal:journl:hal-01721823
    DOI: 10.15609/annaeconstat2009.121-122.91
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    Cited by:

    1. Bertrand Koebel & François Laisney, 2014. "Aggregation with Cournot Competition: the Le Chatelier Samuelson Principle," Annals of Economics and Statistics, GENES, issue 115-116, pages 343-360.

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    More about this item

    Keywords

    Aggregation method; Le Chatelier-Samuelson Principle; Returns to Scale; Markup; Own-Price Elasticity; Market Power;
    All these keywords.

    JEL classification:

    • D21 - Microeconomics - - Production and Organizations - - - Firm Behavior: Theory
    • D43 - Microeconomics - - Market Structure, Pricing, and Design - - - Oligopoly and Other Forms of Market Imperfection

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