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Monopolistic Competition with large firms

Author

Listed:
  • Claude d'Aspremont
  • Rodolphe Dos Santos Ferreira

Abstract

We consider the concept of Cournotian monopolistic competition equilibrium as a tractable way of taking the strategic behaviour of large firms into account in a general equilibrium framework. Existence is obtained under simple assumptions, ensuring in particular uniqueness of Cournot equilibrium for each group of firms. An extension of the concept, allowing intrasectoral competitive behaviour to vary in intensity is also examined.

Suggested Citation

  • Claude d'Aspremont & Rodolphe Dos Santos Ferreira, 2025. "Monopolistic Competition with large firms," Working Papers of BETA 2025-21, Bureau d'Economie Théorique et Appliquée, UDS, Strasbourg.
    • Handle: RePEc:ulp:sbbeta:2025-21
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    File URL: http://beta.u-strasbg.fr/WP/2025/2025-21.pdf
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    More about this item

    Keywords

    Oligopolistic and monopolistic competition. Uniqueness of Cournot equilibrium.;

    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

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