Oligopoly equilibria in exchange economies: A limit theorem (Q5940599)

The paper deals with the relationship between the strategic behaviour and the competitive outcome in the framework of an enlarged economy. In the model considered in the paper, it is assumed that the agent's strategy is the part of initial endowement he sends on the market. In particular, the author considers a finite exchange economy and proves that the symmetric oligopoly equilibria lead to the competitive equilibrium as the economies replicated infinitely, under the condition that the Walras price equilibrium with respect to any strategy is unique. The main results ensure the convergence of the price-allocations corresponding to the oligopoly equilibria in the successive economies without ensuring the convergence of the strategies of oligopoly equilibria themselves.