Computing cournot equilibrium through maximization over prices

Orbay, Hakan (2009) Computing cournot equilibrium through maximization over prices. Economic Letters, 105 (1). pp. 71-73. ISSN 0165-1765

This is the latest version of this item.

[thumbnail of This is a RoMEO green publisher - author can archive post-print (ie final draft post-refereeing)]

PDF (This is a RoMEO green publisher - author can archive post-print (ie final draft post-refereeing))
cournot8.pdf
Download (189kB)

Official URL: http://dx.doi.org/10.1016/j.econlet.2009.06.001

Abstract

This paper presents an alternative characterization of internal Cournot equilibrium based on the first-order conditions corresponding to profit maximization over prices. This characterization is particularly useful when the market is described in terms of demand functions (rather than inverse-demand functions). A significant computational advantage is gained in homogeneous good cases as demand functions need not be inverted and simple first order conditions are obtained. In addition, this approach mimics price setting behavior and thus suggests a price competition interpretation of the Cournot game.

Item Type:	Article
Uncontrolled Keywords:	Cournot equilibrium
Subjects:	H Social Sciences > HB Economic Theory
Divisions:	Sabancı Business School
Depositing User:	Hakan Orbay
Date Deposited:	04 Dec 2009 13:50
Last Modified:	26 Apr 2022 08:34
URI:	https://research.sabanciuniv.edu/id/eprint/13325

Available Versions of this Item

Computing Cournot Equilibrium through Maximization over Prices. (deposited 12 Nov 2007 09:16)
- Computing cournot equilibrium through maximization over prices. (deposited 04 Dec 2009 13:50) [Currently Displayed]

Actions (login required)

: View Item