On the foundation of monopoly in bilateral exchange (Q6142575)

In this paper, the authors consider the mixed version of a monopolistic two-commodity exchange economy introduced by \textit{B. Shitovitz} [Econometrica 41, 467--501 (1973; Zbl 0281.90015)], in which one commodity is held only by the monopolist, represented as an atom, and the other is held only by small traders, represented by an atomless part. It is proved that the set of the allocations corresponding to a monopoly equilibrium and the set of the allocations corresponding to a subgame perfect equilibrium of the two-stage game coincide.