IDEAS home Printed from https://ideas.repec.org/a/ris/ecoint/0675.html
   My bibliography  Save this article

Asymptotic Relations in Cournot’s Quantity Game: Some International Trade Implications - Relazioni asintotiche nel gioco di Cournot: alcune implicazioni per il commercio internazionale

Author

Listed:

Abstract

In this paper, drawing on international trade theory, I derive the asymptotic relation that holds for oligopolists’ iso-profit curves within Cournot’s game and I discuss the properties of the Nash equilibrium. Thereafter, I provide an economic rationale for such a mathematical relation. The results of this exploration suggest that for each firm the asymptotes of the iso-profit curves convey the boundaries towards which output competitors become net purchasers of the produced good. - In questo lavoro, con riferimento alla teoria del commercio internazionale, deriviamo la relazione asintotica verificata dalle curve di iso-profitto di due ipotetiche imprese che in un mercato oligopolistico competono nelle quantità. In aggiunta, dopo aver discusso le proprietà del risultante equilibrio di Nash, forniamo una spiegazione economica di questa relazione matematica. I risultati di questa indagine teorica suggeriscono che per ogni impresa gli asintoti delle curve di iso-profitto rappresentano i limiti produttivi verso i quali i rispettivi contendenti sul mercato del prodotto diventano acquirenti netti nella merce presa in considerazione.

Suggested Citation

  • Guerrazzi, Marco, 2013. "Asymptotic Relations in Cournot’s Quantity Game: Some International Trade Implications - Relazioni asintotiche nel gioco di Cournot: alcune implicazioni per il commercio internazionale," Economia Internazionale / International Economics, Camera di Commercio Industria Artigianato Agricoltura di Genova, vol. 66(1), pages 47-56.
    • Handle: RePEc:ris:ecoint:0675
    as

    Download full text from publisher

    File URL: http://www.iei1946.it/RePEc/ccg/GUERRAZZI%2047_56.pdf
    File Function: Full text
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Collie, David, 1992. "International Trade and Cournot Equilibrium: Existence, Uniqueness and Comparative Statics," Bulletin of Economic Research, Wiley Blackwell, vol. 44(1), pages 55-66, January.
    2. James R. MARKUSEN, 2021. "Trade And The Gains From Trade With Imperfect Competition," World Scientific Book Chapters, in: BROADENING TRADE THEORY Incorporating Market Realities into Traditional Models, chapter 14, pages 303-323, World Scientific Publishing Co. Pte. Ltd..
    3. Mas-Colell, Andreu & Whinston, Michael D. & Green, Jerry R., 1995. "Microeconomic Theory," OUP Catalogue, Oxford University Press, number 9780195102680.
    4. Marco Guerrazzi, 2014. "Involuntary Unemployment and Efficiency-Wage Competition," Research in Labor Economics, in: New Analyses of Worker Well-Being, volume 38, pages 193-210, Emerald Group Publishing Limited.
    5. R. Melvin, James & Warne, Robert D., 1973. "Monopoly and the theory of international trade," Journal of International Economics, Elsevier, vol. 3(2), pages 117-134, May.
    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. H. Molana & T. Moutos, 1992. "Returns to scale, imperfect competition and aggregate demand and trade policy effects in a two-country model," Open Economies Review, Springer, vol. 3(3), pages 271-295, October.
    2. Kenji Fujiwara & Koji Shimomura, 2005. "A factor endowment theory of international trade under imperfect competition and increasing returns," Canadian Journal of Economics, Canadian Economics Association, vol. 38(1), pages 273-289, February.
    3. Egbert Dierker & Hildegard Dierker & Birgit Grodal, 2003. "Cournot-Nash Competition in a General Equilibrium Model of International Trade," Discussion Papers 03-28, University of Copenhagen. Department of Economics.
    4. Keith Head & Barbara J. Spencer, 2017. "Oligopoly in international trade: Rise, fall and resurgence," Canadian Journal of Economics, Canadian Economics Association, vol. 50(5), pages 1414-1444, December.
    5. Egbert Dierker & Hildegard Dierker & Birgit Grodal, 2003. "Cournot-Nash Competition in a General Equilibrium Model of International Trade," Discussion Papers 03-28, University of Copenhagen. Department of Economics.
    6. Xiaobing Xing & Jiexiang Xu, 2014. "The saving rate and the upgrade of the trade commodity structure in developing countries: A dynamic H-O model under an oligopolistic market structure," The Journal of International Trade & Economic Development, Taylor & Francis Journals, vol. 23(8), pages 1145-1169, December.
    7. Harris, Richard G., 1989. "The New Protectionism Revisited," Queen's Institute for Economic Research Discussion Papers 275219, Queen's University - Department of Economics.
    8. Wright, Austin L. & Sonin, Konstantin & Driscoll, Jesse & Wilson, Jarnickae, 2020. "Poverty and economic dislocation reduce compliance with COVID-19 shelter-in-place protocols," Journal of Economic Behavior & Organization, Elsevier, vol. 180(C), pages 544-554.
    9. Jolian McHardy & Michael Reynolds & Stephen Trotter, 2012. "The Stackelberg Model as a Partial Solution to the Problem of Pricing in a Network," Working Paper series 19_12, Rimini Centre for Economic Analysis.
    10. Janvier D. Nkurunziza, 2005. "Reputation and Credit without Collateral in Africa`s Formal Banking," Economics Series Working Papers WPS/2005-02, University of Oxford, Department of Economics.
    11. Stephanie Rosenkranz & Patrick W. Schmitz, 2007. "Can Coasean Bargaining Justify Pigouvian Taxation?," Economica, London School of Economics and Political Science, vol. 74(296), pages 573-585, November.
    12. Vadim Borokhov, 2014. "On the properties of nodal price response matrix in electricity markets," Papers 1404.3678, arXiv.org, revised Jan 2015.
    13. Yuzhou Jiang & Ramteen Sioshansi, 2023. "What Duality Theory Tells Us About Giving Market Operators the Authority to Dispatch Energy Storage," The Energy Journal, , vol. 44(3), pages 89-110, May.
    14. Daniel Sutter & Daniel J. Smith, 2017. "Coordination in disaster: Nonprice learning and the allocation of resources after natural disasters," The Review of Austrian Economics, Springer;Society for the Development of Austrian Economics, vol. 30(4), pages 469-492, December.
    15. Hanming Fang & Peter Norman, 2014. "Toward an efficiency rationale for the public provision of private goods," Economic Theory, Springer;Society for the Advancement of Economic Theory (SAET), vol. 56(2), pages 375-408, June.
    16. Gan, Li & Ju, Gaosheng & Zhu, Xi, 2015. "Nonparametric estimation of structural labor supply and exact welfare change under nonconvex piecewise-linear budget sets," Journal of Econometrics, Elsevier, vol. 188(2), pages 526-544.
    17. Peterson, Jeffrey M. & Boisvert, Richard N. & de Gorter, Harry, 1999. "Multifunctionality and Optimal Environmental Policies for Agriculture in an Open Economy," Working Papers 127701, Cornell University, Department of Applied Economics and Management.
    18. Tian, Guoqiang, 2009. "Implementation of Pareto efficient allocations," Journal of Mathematical Economics, Elsevier, vol. 45(1-2), pages 113-123, January.
    19. Dipankar Purkayastha, 1999. "Patriarchal Monopoly and Economic Development," Feminist Economics, Taylor & Francis Journals, vol. 5(2), pages 61-78.
    20. Ahmad Naimzada & Marina Pireddu, 2019. "The first fundamental theorem of welfare in a general equilibrium evolutionary setting," Working Papers 415, University of Milano-Bicocca, Department of Economics, revised 06 Jun 2019.

    More about this item

    Keywords

    Cournot’s Game; International Trade; Nash Equilibrium; Asymptotes;
    All these keywords.

    JEL classification:

    • C72 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Noncooperative Games
    • F12 - International Economics - - Trade - - - Models of Trade with Imperfect Competition and Scale Economies; Fragmentation

    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:ris:ecoint:0675. 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: Angela Procopio (email available below). General contact details of provider: https://edirc.repec.org/data/cacogit.html .

    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.