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Oligopoly equilibria ‘à la Stackelberg’ in pure exchange economies

Author

Listed:
  • Ludovic Julien

    (LEG - Laboratoire d'Economie et de Gestion - UB - Université de Bourgogne - CNRS - Centre National de la Recherche Scientifique)

  • Fabrice Tricou

    (EconomiX - EconomiX - UPN - Université Paris Nanterre - CNRS - Centre National de la Recherche Scientifique)

Abstract

This paper introduces two equilibrium concepts which extend the notion of Stackelberg competition to cover a general equilibrium framework. From the benchmarks of Cournot-Walras economies and of strategic market games, the introduction of an active leader modifies the working of market power and the configuration of strategic interactions. In the context of a simple pure exchange economy, asymptotic identification and welfare results are thus obtained, about Stackelberg general equilibria, compared to Cournot general equilibria and to the competitive equilibrium.

Suggested Citation

  • Ludovic Julien & Fabrice Tricou, 2010. "Oligopoly equilibria ‘à la Stackelberg’ in pure exchange economies," Post-Print halshs-01228027, HAL.
    • Handle: RePEc:hal:journl:halshs-01228027
    DOI: 10.3917/rel.762.0175
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    References listed on IDEAS

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    1. Busetto, Francesca & Codognato, Giulio & Ghosal, Sayantan, 2008. "Cournot-Walras Equilibrium as a Subgame Perfect Equilibrium," The Warwick Economics Research Paper Series (TWERPS) 837, University of Warwick, Department of Economics.
    2. Codognato, Giulio & Gabszewicz, Jean J, 1993. "Cournot-Walras Equilibria in Markets with a Continuum of Traders," Economic Theory, Springer;Society for the Advancement of Economic Theory (SAET), vol. 3(3), pages 453-464, July.
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    4. Codognato, Giulio & Ghosal, Sayantan, 2000. "Cournot-Nash equilibria in limit exchange economies with complete markets and consistent prices," Journal of Mathematical Economics, Elsevier, vol. 34(1), pages 39-53, August.
    5. Jean Tirole, 1988. "The Theory of Industrial Organization," MIT Press Books, The MIT Press, edition 1, volume 1, number 0262200716, April.
    6. Jean J. Gabszewicz, 2002. "Strategic Multilateral Exchange," Books, Edward Elgar Publishing, number 756.
    7. Kreps, David M., 1990. "Game Theory and Economic Modelling," OUP Catalogue, Oxford University Press, number 9780198283812.
    8. Drew Fudenberg & Jean Tirole, 1991. "Game Theory," MIT Press Books, The MIT Press, edition 1, volume 1, number 0262061414, April.
    9. 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.
    10. Sahi, Siddhartha & Yao, Shuntian, 1989. "The non-cooperative equilibria of a trading economy with complete markets and consistent prices," Journal of Mathematical Economics, Elsevier, vol. 18(4), pages 325-346, September.
    11. GABSZEWICZ, Jean & GRAZZINI, Lisa, 2000. "Strategic multilateral exchange and taxes," LIDAM Discussion Papers CORE 2000063, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE).
    12. Giraud, Gael, 2003. "Strategic market games: an introduction," Journal of Mathematical Economics, Elsevier, vol. 39(5-6), pages 355-375, July.
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    Citations

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    Cited by:

    1. Ludovic A. Julien, 2017. "Hierarchical competition and heterogeneous behavior in noncooperative oligopoly markets," Working Papers hal-04141649, HAL.
    2. Ludovic A. Julien & Fabrice Tricou, 2008. "Market Price Mechanisms and Stackelberg General Equilibria," EconomiX Working Papers 2008-29, University of Paris Nanterre, EconomiX.
    3. Julien, Ludovic A., 2013. "On Stackelberg competition in strategic multilateral exchange," Research in Economics, Elsevier, vol. 67(1), pages 59-75.
    4. Ludovic A. Julien & Olivier Musy, 2015. "A Review of Heinrich von Stackelberg's Book: ‘Market Structure and Equilibrium’," Australian Economic Papers, Wiley Blackwell, vol. 54(1), pages 52-60, March.

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    More about this item

    Keywords

    Oligopoly equilibria; Stackelberg; Economies;
    All these keywords.

    JEL classification:

    • D43 - Microeconomics - - Market Structure, Pricing, and Design - - - Oligopoly and Other Forms of Market Imperfection
    • D51 - Microeconomics - - General Equilibrium and Disequilibrium - - - Exchange and Production Economies

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