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A Model of Monopolistic Competition: A General Equilibrium Approach
[Un modèle de concurrence monopolistique: Une approche en équilibre général]

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  • Hubert Stahn

    (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 is devoted to the study of the existence of a general equilibrium with price making firms. I assume that each firm is able to compute an objective demand for his produced goods and uses this information in order to set prices. The definition of an objective demand is set in a context of general equilibrium and the existence of such a continuous function is proved under few assumptions. I also define a monopolistic equilibrium conditional to this objective demand and show it existence under standart assumptions.

Suggested Citation

  • Hubert Stahn, 1996. "A Model of Monopolistic Competition: A General Equilibrium Approach [Un modèle de concurrence monopolistique: Une approche en équilibre général]," Post-Print hal-05220968, HAL.
    • Handle: RePEc:hal:journl:hal-05220968
    DOI: 10.2307/20076025
    Note: View the original document on HAL open archive server: https://hal.science/hal-05220968v1
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    References listed on IDEAS

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    1. Claude d'Aspremont & Rodolphe Dos Santos Ferreira & Louis-André Gérard-Varet, 1990. "On Monopolistic Competition and Involuntary Unemployment," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 105(4), pages 895-919.
    2. d’ASPREMONT, Cl. & DOS SANTOS FERREIRA, R. & GERARD-VARET, L.-A., 1988. "Unemployment in a Cournot oligopoly model with Ford effects," LIDAM Discussion Papers CORE 1988018, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE).
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    4. d'Aspremont, Claude & Dos Santos Ferreira, Rodolphe & Gerard-Varet, Louis-Andre, 1989. "Unemployment in an Extended Cournot Oligopoly Model," Oxford Economic Papers, Oxford University Press, vol. 41(3), pages 490-505, July.
    5. Roberts, Kevin, 1980. "The limit points of monopolistic competition," Journal of Economic Theory, Elsevier, vol. 22(2), pages 256-278, April.
    6. Roberts, John & Sonnenschein, Hugo, 1977. "On the Foundations of the Theory of Monopolistic Competition," Econometrica, Econometric Society, vol. 45(1), pages 101-113, January.
    7. Jean-Pascal Benassy, 1976. "The Disequilibrium Approach to Monopolistic Price Setting and General Monopolistic Equilibrium," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 43(1), pages 69-81.
    8. Gary-Bobo, Robert J., 1987. "Locally consistent oligopolistic equilibria are Cournot-Walras equilibria," Economics Letters, Elsevier, vol. 23(3), pages 217-221.
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