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General Equilibrium And Imperfect Competition: Profit Feedback Effects And Price Normalisations

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  • Cripps, M. W.
  • Myles, G. D.

Abstract

There are two general issues which bedevil general equilibrium models with imperfect competition: price normalisation and the feedback from prices to incomes. We present a class of normalisations which do not affect the behaviour of oligopolists, this is argued to be the only class of normalisations with this general property. We also provide a set of necessary conditions for the existence of equilibrium with monopoly and feedback effects.

Suggested Citation

  • Cripps, M. W. & Myles, G. D., 1988. "General Equilibrium And Imperfect Competition: Profit Feedback Effects And Price Normalisations," Economic Research Papers 268331, University of Warwick - Department of Economics.
    • Handle: RePEc:ags:uwarer:268331
    DOI: 10.22004/ag.econ.268331
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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.
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    Cited by:

    1. Victor Ginsburgh, 1994. "In the Cournot-Walras general equilibrium model, there may be 'more to gain' by changing the numeraire than by eliminating imperfections: a two-good economy example," ULB Institutional Repository 2013/1885, ULB -- Universite Libre de Bruxelles.
    2. Symons, Elizabeth & Walker, Ian, 1989. "The Revenue and Welfare Effects of Fiscal Harmonization for the UK," Oxford Review of Economic Policy, Oxford University Press and Oxford Review of Economic Policy Limited, vol. 5(2), pages 61-75, Summer.

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