Free entry and stability in a Cournot model

DOI10.1016/0022-0531(86)90075-XMaRDI QIDQ1087462zbMATH OpenOpenAlexFDO

Authors Gabrielle Demange

Publication date 1986

Published in Journal of Economic Theory (Search for Journal in Brave)

Full work available at URL https://doi.org/10.1016/0022-0531(86)90075-x

zbMATH Keywords

continuous quantity adjustment processCournot equilibriumCournot modelfree entrysingle homogeneous goodstability properties

Mathematics Subject Classification ID

Microeconomic theory (price theory and economic markets) (91B24) General equilibrium theory (91B50)

Review text

In a Cournot model for a single homogeneous good, we study simultaneously two stability properties of a Cournot equilibrium: the stability of a continuous quantity adjustment process with a fixed number of firms and the stability relative to entry. Under usual assumptions, we show that these two properties are consistent - i.e., there exists an equilibrium that is stable in both senses - and determine quite sharply the number of active firms.

Recommendations

• On the Effects of Entry in Cournot Markets
• Local stability of the Cournot solution with increasing heterogeneous competitors
• Is a unique Cournot equilibrium locally stable?
• Some notes on the stability of a simple Cournot economy with a Leontief technology
• FREE ENTRY, MARKET SIZE, AND THE OPTIMISTIC STABILITY

Cites work

• Cournot and Walras equilibrium
• Cournot Equilibrium with Free Entry
• Cournot Oligopoly and Competitive Behaviour
• Finding All n-Firm Cournot Equilibria
• scientific article; zbMATH DE number 3722455 (Why is no real title available?)
• On the Effects of Entry

Cited in

(15)

• Symmetric equilibrium with random entry
• Endogenous number of firms, horizontal concentration and heterogeneity of firms -- a note
• Comparative statics in Cournot free entry equilibrium
• On the counter-cyclicality of prices and markups in a Cournot model of entry
• Market size, entry costs and free entry Cournot equilibrium
• FREE ENTRY, MARKET SIZE, AND THE OPTIMISTIC STABILITY
• Some notes on the stability of a simple Cournot economy with a Leontief technology
• Consistent conjecture and free entry oligopoly: a general analysis
• Survival in Cournot games
• scientific article; zbMATH DE number 1488116 (Why is no real title available?)
• On the Effects of Entry in Cournot Markets
• Free entry versus socially optimal entry
• On multiplicity of consistent conjectures in free entry oligopoly
• Entry and growth in a perfectly competitive vintage model
• Non-linear endogenous fluctuations with free entry and variable markups

This page was built for publication: Free entry and stability in a Cournot model

Report a bug (only for logged in users!)Click here to report a bug for this page (MaRDI item Q1087462)