On the equilibrium uniqueness in Cournot competition with demand uncertainty

DOI10.1515/BEJTE-2019-0131MaRDI QIDQ2099071zbMATH OpenOpenAlexFDO

Authors Stefanos Leonardos, Costis Melolidakis

Publication date 22 November 2022

Published in The B.E. Journal of Theoretical Economics (Search for Journal in Brave)

Full work available at URL https://arxiv.org/abs/1906.03558

zbMATH Keywords

Cournot modeldemand distributionsdemand uncertaintyunique equilibrium

Mathematics Subject Classification ID

Special types of economic equilibria (91B52) Special types of economic markets (including Cournot, Bertrand) (91B54)

Abstract: We revisit the linear Cournot model with uncertain demand that is studied in Lagerl"of (2006)* and provide sufficient conditions for equilibrium uniqueness that complement the existing results. We show that if the distribution of the demand intercept has the decreasing mean residual demand (DMRD) or the increasing generalized failure rate (IGFR) property, then uniqueness of equilibrium is guaranteed. The DMRD condition implies log-concavity of the expected profits per unit of output without additional assumptions on the existence or the shape of the density of the demand intercept and, hence, answers in the affirmative the conjecture of Lagerl"of (2006)* that such conditions may not be necessary. *Johan Lagerl"of, Equilibrium uniqueness in a Cournot model with demand uncertainty. The B.E. Journal in Theoretical Economics, Vol. 6: Iss 1. (Topics), Article 19:1--6, 2006.

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Cited in

(14)

• On Cournot-Nash equilibria with exogenous uncertainty
• The impact of cost uncertainty on Cournot duopoly game with concave demand function
• On Condorelli inequality for log-concave demand
• On the uniqueness of Cournot equilibrium in case of concave integrated price flexibility
• An asymmetric Cournot-Nash equilibrium under uncertainty as a generalized Cournot-Stackelberg-Nash equilibrium
• On the existence and social optimality of equilibria in a Hotelling game with uncertain demand and linear-quadratic costs
• scientific article; zbMATH DE number 2129482 (Why is no real title available?)
• Cournot equilibrium uniqueness via demi-concavity
• scientific article; zbMATH DE number 6315674 (Why is no real title available?)
• Quantity-Setting Competition with Differentiated Goods under Uncertain Demand
• A generalization of the increasing generalized failure rate unimodality condition
• On the equilibrium uniqueness in noncooperative n-person games
• On industry equilibrium under uncertainty
• On the satisfaction of peak demand in the certainty case

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