Optimal Resource Allocation in General Cournot-competitive Equilibrium
Conventional economic theory stipulates that output in Cournot competition is too low relative to that which is attained in perfect competition. We revisit this result in a General Cournot-competitive Equilibrium model with two industries that differ only in terms of productivity. We show that in general equilibrium, the more efficient industry produces too little and the less efficient industry produces too much compared to an optimal scenario with perfect competition. JEL classification: Cournot oligopoly ; GOLE (General Oligopolistic Equilibrium) ; industrial policy. JEL codes: D50 ; H21 ; L13
|Date of creation:||2013|
|Contact details of provider:|| Postal: CV4 7AL COVENTRY|
Phone: +44 (0) 2476 523202
Fax: +44 (0) 2476 523032
Web page: http://www2.warwick.ac.uk/fac/soc/economics/
More information through EDIRC
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.:
- Dixit, Avinash K. & Grossman, Gene M., 1986.
"Targeted export promotion with several oligopolistic industries,"
Journal of International Economics,
Elsevier, vol. 21(3-4), pages 233-249, November.
- Avinash K. Dixit & Gene M. Grossman, 1984. "Targeted Export Promotion with Several Oligopolistic Industries," NBER Working Papers 1344, National Bureau of Economic Research, Inc.
When requesting a correction, please mention this item's handle: RePEc:wrk:warwec:1010. 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: (Margaret Nash)
If references are entirely missing, you can add them using this form.