IDEAS home Printed from https://ideas.repec.org/a/kap/jeczfn/v85y2005i1p65-71.html
   My bibliography  Save this article

Non-existence of Duopoly Equilibria: A Simple Numerical Example

Author

Listed:
  • 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).
(This abstract was borrowed from another version of this item.)

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
    as

    Download full text from publisher

    File URL: http://hdl.handle.net/10.1007/s00712-005-0119-9
    Download Restriction: Access to full text is restricted to subscribers.
    File URL: https://libkey.io/10.1007/s00712-005-0119-9?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to look for a different version below or search for a different version of it.

    Other versions of this item:

    References listed on IDEAS

    as
    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. 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.
    4. 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.
    5. Cordella, Tito & J. Gabszewicz, Jean, 1997. "Comparative advantage under oligopoly," Journal of International Economics, Elsevier, vol. 43(3-4), pages 333-346, November.
    6. Gale, David, 1976. "The linear exchange model," Journal of Mathematical Economics, Elsevier, vol. 3(2), pages 205-209, July.
    7. GABSZEWICZ, Jean & MICHEL, Philippe, 1992. "Oligopoly equilibria in exchange economies," LIDAM Discussion Papers CORE 1992047, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE).
    8. 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.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Rudy Colacicco, 2015. "Ten Years Of General Oligopolistic Equilibrium: A Survey," Journal of Economic Surveys, Wiley Blackwell, vol. 29(5), pages 965-992, December.
    2. Francesca Busetto & Giulio Codognato & Sayantan Ghosal, 2012. "Noncooperative Oligopoly in Markets with a Continuum of Traders: A Limit Theorem," EconomiX Working Papers 2012-49, University of Paris Nanterre, EconomiX.
    3. Ludovic A. Julien & Fabrice Tricou, 2008. "Market Price Mechanisms and Stackelberg General Equilibria," Working Papers hal-04140726, HAL.
    4. repec:cte:wsrepe:9968 is not listed on IDEAS
    5. Bio-Akanni ELEGBEDE, 2017. "Oligopoly Equilibrium with differentiated commodities: a computation of two models," Working Papers CREGO 1171201, Université de Bourgogne - CREGO EA7317 Centre de recherches en gestion des organisations.
    6. Chang, Winston W. & Chen, Tai-Liang & Saito, Tetsuya, 2021. "Formation of symmetric free-trade blocs, optimal tariff structure, and world welfare," Journal of Asian Economics, Elsevier, vol. 77(C).
    7. Busetto, Francesca & Codognato, Giulio & Ghosal, Sayantan, 2011. "Noncooperative oligopoly in markets with a continuum of traders," Games and Economic Behavior, Elsevier, vol. 72(1), pages 38-45, May.
    8. Mercenier, Jean, 1995. "Can "1992" reduce unemployment in Europe? On welfare and employment effects of Europe's move to a single market," Journal of Policy Modeling, Elsevier, vol. 17(1), pages 1-37, February.
    9. Jean J. Gabszewicz & Jacques-François Thisse, 2000. "Microeconomic theories of imperfect competition," Cahiers d'Économie Politique, Programme National Persée, vol. 37(1), pages 47-99.
    10. Lahmandi-Ayed, Rim & Laussel, Didier, 2018. "When do imperfectly competitive firms maximize profits? The lessons from a simple general equilibrium model with shareholders’ voting," Journal of Mathematical Economics, Elsevier, vol. 78(C), pages 6-12.
    11. Busetto, Francesca & Codognato, Giulio & Ghosal, Syantan, 2008. "Cournot-Walras Equilibrium as a Subgame Perfect Equilibrium," Economic Research Papers 269786, University of Warwick - Department of Economics.
    12. Gerhard Sorger, 1996. "Imperfect competition and capital accumulation: the role of price normalization," Journal of Economics, Springer, vol. 63(3), pages 279-302, October.
    13. Ramón Torregrosa, 2008. "Macroeconomic effects of an indirect tax substitution," Journal of Economics, Springer, vol. 94(3), pages 199-221, September.
    14. Camelia Bejan, 2008. "The objective of a privately owned firm under imperfect competition," Economic Theory, Springer;Society for the Advancement of Economic Theory (SAET), vol. 37(1), pages 99-118, October.
    15. Francesca Busetto & Giulio Codognato & Giorgia Pavan & Simone Tonin, 2023. "Cournotian duopolistic firms may be Walrasian: a case in the Gabszewicz and Vial model," Journal of Economics, Springer, vol. 140(2), pages 121-140, October.
    16. Klaus Ritzberger, 2007. "Price normalization under imperfect competition," Economic Theory, Springer;Society for the Advancement of Economic Theory (SAET), vol. 33(2), pages 365-368, November.
    17. Mathieu Parenti & Alexander V. Sidorov & Jacques-François Thisse & Evgeny V. Zhelobodko, 2017. "Cournot, Bertrand or Chamberlin: Toward a reconciliation," International Journal of Economic Theory, The International Society for Economic Theory, vol. 13(1), pages 29-45, March.
    18. Behrens, Kristian & Murata, Yasusada, 2012. "Trade, competition, and efficiency," Journal of International Economics, Elsevier, vol. 87(1), pages 1-17.
    19. Ken-Ichi Shimomura & Jacques-François Thisse, 2012. "Competition among the big and the small," RAND Journal of Economics, RAND Corporation, vol. 43(2), pages 329-347, June.
    20. J. Peter Neary, 2007. "Cross-Border Mergers as Instruments of Comparative Advantage," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 74(4), pages 1229-1257.
    21. Pradeep Dubey & Martin Shubik, 1978. "On 'On the Foundations of the Theory of Monopolistic Competition'," Cowles Foundation Discussion Papers 484, Cowles Foundation for Research in Economics, Yale University.

    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

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:kap:jeczfn:v:85:y:2005:i:1:p:65-71. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Sonal Shukla or Springer Nature Abstracting and Indexing (email available below). General contact details of provider: http://www.springer.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.