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International Trade And Cournot Equilibrium: Existence, Uniqueness And Comparative Statics

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  • COLLIE, D.

Abstract

This paper proves the existence and uniqueness of Cournot equilibrium in models of international trade under oligopoly. The existence of Cournot equilibrium is established without the usual assumption that profit functions are concave. Instead the proof uses a weaker "aggregate concavity" condition. A simple proof is used to establish the uniqueness of the equilibrium. And, the paper considers the implications of the assumptions, used to prove the existence and uniqueness of the equilibrium, on the comparative static results. Copyright 1992 by Blackwell Publishing Ltd and the Board of Trustees of the Bulletin of Economic Research
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Suggested Citation

  • Collie, D., 1990. "International Trade And Cournot Equilibrium: Existence, Uniqueness And Comparative Statics," The Warwick Economics Research Paper Series (TWERPS) 352, University of Warwick, Department of Economics.
    • Handle: RePEc:wrk:warwec:352
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    References listed on IDEAS

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    1. Brander, James & Krugman, Paul, 1983. "A 'reciprocal dumping' model of international trade," Journal of International Economics, Elsevier, vol. 15(3-4), pages 313-321, November.
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    6. Seade, Jesus, 1980. "The stability of cournot revisited," Journal of Economic Theory, Elsevier, vol. 23(1), pages 15-27, August.
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    12. Partha Dasgupta & Eric Maskin, 1986. "The Existence of Equilibrium in Discontinuous Economic Games, II: Applications," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 53(1), pages 27-41.
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    Cited by:

    1. Aidan Hollis, 2003. "Industrial Concentration, Output, and Trade: An Empirical Exploration," Review of Industrial Organization, Springer;The Industrial Organization Society, vol. 22(2), pages 103-119, March.
    2. Broll, Udo & Wahl, Jack E. & Wessel, Christoph, 2008. "Export production, hedging exchange rate risk: the duopoly case," Dresden Discussion Paper Series in Economics 06/08, Technische Universität Dresden, Faculty of Business and Economics, Department of Economics.
    3. Udo Broll & Peter Welzel & Kit Wong, 2009. "Export and Strategic Currency Hedging," Open Economies Review, Springer, vol. 20(5), pages 717-732, November.
    4. M. Kunizaki, 1992. "The Effects of a Commodity Tax in an International Oligopoly Model," Economics Discussion / Working Papers 92-25, The University of Western Australia, Department of Economics.
    5. Collie, David, 1991. "Export subsidies and countervailing tariffs," Journal of International Economics, Elsevier, vol. 31(3-4), pages 309-324, November.
    6. Guerrazzi, Marco, 2013. "Asymptotic Relations in Cournot’s Quantity Game: Some International Trade Implications - Relazioni asintotiche nel gioco di Cournot: alcune implicazioni per il commercio internazionale," Economia Internazionale / International Economics, Camera di Commercio Industria Artigianato Agricoltura di Genova, vol. 66(1), pages 47-56.
    7. Udo Broll & Peter Welzel & Kit Pong Wong, 1999. "Strategic Hedging," Working Paper Series B 1999-04, Friedrich Schiller University of Jena, School of of Economics and Business Administration.
    8. R Cornes & R Hartley, 2005. "The Geometry of Aggregative Games," Economics Discussion Paper Series 0514, Economics, The University of Manchester.
    9. Petros G. Sekeris & Kevin Siqueira, 2021. "Payoff-Improving Competition: Games with Negative Externalities," Review of Industrial Organization, Springer;The Industrial Organization Society, vol. 58(3), pages 455-474, May.

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