On The Existence of A Cournot Equilibrium With Endogenous Income
We consider the general equilibrium of an economy with Cournot competition in the product market. In this framework, firms endowed with market power are assumed to know the true or objective demand function. However, depending on the economy's structure, the demand function varies with the size of income feedback effects. Two cases are studied depending on whether the consumers' income is considered by firms as exogenous (no feedback effects) or indogenous (feedback effects) to their actions. We establish a relationship between both cases, that is to say an expression for the demand for goods including feedback effects in terms of the demand without feedback effects. This relationship is useful regarding the conditions ensuring the existence of a Cournot equilibrium and also the features of this equilibrium. We illustrate the latter point through macroeconomic implications such as the debate, full employment vs involuntary unemployment.
To our knowledge, this item is not available for
download. To find whether it is available, there are three
1. Check below under "Related research" whether another version of this item is available online.
2. Check on the provider's web page whether it is in fact available.
3. Perform a search for a similarly titled item that would be available.
|Date of creation:||Feb 2000|
|Date of revision:|
|Contact details of provider:|| Postal: |
Phone: 01334 462420
Fax: 01334 462438
Web page: http://crieff.wordpress.com/
More information through EDIRC
References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Silvestre, J., 1988.
"There May Be Unemployment When The Labor Market Is Competitive And The Output Market Is Not,"
316, California Davis - Institute of Governmental Affairs.
- Silvestre, Joaquim, 1990. "There May Be Unemployment When the Labour Market Is Competitive and the Output Market Is Not," Economic Journal, Royal Economic Society, vol. 100(402), pages 899-913, September.
- Laurence Lasselle & Serge Svizzero, 1998. "Involuntary Unemployment and Income Feedback Effects," CRIEFF Discussion Papers 9823, Centre for Research into Industry, Enterprise, Finance and the Firm.
- Lasselle, Laurence & Svizzero, Serge, 2001. "The Impossibility of Underemployment with More Than One Product Market," Oxford Economic Papers, Oxford University Press, vol. 53(1), pages 157-65, January.
- Christian Schultz, 1989.
"The Impossibility of "Involuntary Unemployment" in an Overlapping Generations Model with Rational Expectations,"
89-18, University of Copenhagen. Department of Economics, revised Oct 1989.
- Schultz, Christian, 1992. "The impossibility of involuntary unemployment in an overlapping generations model with rational expectations," Journal of Economic Theory, Elsevier, vol. 58(1), pages 61-76, October.
- Laurence Lasselle & Serge Svizzero, 2000.
"Involuntary Unemployment in Imperfectly Competitive General Equilibrium Models,"
CRIEFF Discussion Papers
0008, Centre for Research into Industry, Enterprise, Finance and the Firm.
- Lasselle, Laurence S & Svizzero, Serge A, 2002. " Involuntary Unemployment in Imperfectly Competitive General Equilibrium Models," Journal of Economic Surveys, Wiley Blackwell, vol. 16(4), pages 487-507, September.
- Novshek, William, 1985.
"On the Existence of Cournot Equilibrium,"
Review of Economic Studies,
Wiley Blackwell, vol. 52(1), pages 85-98, January.
- Kaas, Leo, 1998. "Multiplicity of Cournot Equilibria and Involuntary Unemployment," Journal of Economic Theory, Elsevier, vol. 80(2), pages 332-349, June.
- Silvestre, J., 1991.
"The Market-Power Foundations of Macroeconomic Policy,"
374, California Davis - Institute of Governmental Affairs.
- Silvestre, Joaquim, 1993. "The Market-Power Foundations of Macroeconomic Policy," Journal of Economic Literature, American Economic Association, vol. 31(1), pages 105-41, March.
- Hart, Oliver, 1982. "A Model of Imperfect Competition with Keynesian Features," The Quarterly Journal of Economics, MIT Press, vol. 97(1), pages 109-38, February.
When requesting a correction, please mention this item's handle: RePEc:san:crieff:0012. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Bram Boskamp)
If references are entirely missing, you can add them using this form.