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Non-existence of Duopoly Equilibria: A Simple Numerical Example

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  • Jean-Marc Bonnisseau
  • Michael Florig

Abstract

We give a simple example to the non-existence of duopoly equilibrium in pure strategies in an economy with two goods and two types of consumers. This extends also the discussion on the incentive for trade in an oligopolistic framework initiated in Cordella and Gabszewicz (1998).
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Suggested Citation

  • Jean-Marc Bonnisseau & Michael Florig, 2005. "Non-existence of Duopoly Equilibria: A Simple Numerical Example," Journal of Economics, Springer, vol. 85(1), pages 65-71, July.
    • Handle: RePEc:kap:jeczfn:v:85:y:2005:i:1:p:65-71
    DOI: 10.1007/s00712-005-0119-9
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    References listed on IDEAS

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    1. Jaskold Gabszewicz, Jean & Vial, Jean-Philippe, 1972. "Oligopoly "A la cournot" in a general equilibrium analysis," Journal of Economic Theory, Elsevier, vol. 4(3), pages 381-400, June.
    2. Roberts, John & Sonnenschein, Hugo, 1977. "On the Foundations of the Theory of Monopolistic Competition," Econometrica, Econometric Society, vol. 45(1), pages 101-113, January.
    3. Cordella, Tito & J. Gabszewicz, Jean, 1997. "Comparative advantage under oligopoly," Journal of International Economics, Elsevier, vol. 43(3-4), pages 333-346, November.
    4. Gabszewicz, J. & Michel, P., 1992. "Oligopoly Equilibria in Exchange Economies," Papiers d'Economie Mathématique et Applications 92.26, Université Panthéon-Sorbonne (Paris 1).
    5. Birgit Grodal & Egbert Dierker, 1999. "The price normalization problem in imperfect competition and the objective of the firm," Economic Theory, Springer;Society for the Advancement of Economic Theory (SAET), vol. 14(2), pages 257-284.
    6. Egbert Dierker & Hildegard Dierker & Birgit Grodal, 2000. "Objectives of an Imperfectly Competitive Firm: A Surplus Approach," CIE Discussion Papers 2000-06, University of Copenhagen. Department of Economics. Centre for Industrial Economics.
    7. Cordella, Tito & Gabszewicz, Jean J., 1998. ""Nice" Trivial Equilibria in Strategic Market Games," Games and Economic Behavior, Elsevier, vol. 22(1), pages 162-169, January.
    8. Gale, David, 1976. "The linear exchange model," Journal of Mathematical Economics, Elsevier, vol. 3(2), pages 205-209, July.
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    More about this item

    Keywords

    Imperfect competition; Duopoly equilibrium; D50; D43;
    All these keywords.

    JEL classification:

    • D50 - Microeconomics - - General Equilibrium and Disequilibrium - - - General
    • D43 - Microeconomics - - Market Structure, Pricing, and Design - - - Oligopoly and Other Forms of Market Imperfection

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