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Non-Cooperative Asymptotic Oligopoly in Economies with Infinitely Many Commodities

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  • Sayantan Ghosal
  • Simone Tonin

Abstract

In this paper, we extend the non-cooperative analysis of oligopoly to exchange economies with in nitely many commodities by using strategic market games. This setting can be in- terpreted as a model of oligopoly with di erentiated commodities by using the Hotelling line. We prove the existence of an \active" Cournot-Nash equilibrium and show that, when traders are replicated, the price vector and the allocation converge to the Wal- ras equilibrium. We examine how the notion of oligopoly extends to our setting with a coutable in nity of commodities by distinguishing between asymptotic oligopolists and asymptotic price-takers. We illustrate these notions via a number of examples.

Suggested Citation

  • Sayantan Ghosal & Simone Tonin, 2014. "Non-Cooperative Asymptotic Oligopoly in Economies with Infinitely Many Commodities," Working Papers 2014_15, Business School - Economics, University of Glasgow.
    • Handle: RePEc:gla:glaewp:2014_15
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    References listed on IDEAS

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    More about this item

    JEL classification:

    • C72 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Noncooperative Games
    • D43 - Microeconomics - - Market Structure, Pricing, and Design - - - Oligopoly and Other Forms of Market Imperfection
    • D50 - Microeconomics - - General Equilibrium and Disequilibrium - - - General

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