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Explain ‘conjectural variation’ in Cournot duopoly, evaluate its impacts and discuss the policy implication

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  • Douglas, Niall Edward

Abstract

To fully understand the impacts and policy implications of conjectural variation, one must first understand the part it played in the great indeterminacy debate within marginal economics during the first half of the 20th century. Therefore, this paper shall begin with a short description and history of conjectural variation, followed by how the debates surrounding it led to the final resolution of the indeterminacy issue. The policy implications of that resolution for imperfect markets are then briefly discussed.

Suggested Citation

  • Douglas, Niall Edward, 2006. "Explain ‘conjectural variation’ in Cournot duopoly, evaluate its impacts and discuss the policy implication," MPRA Paper 13652, University Library of Munich, Germany.
    • Handle: RePEc:pra:mprapa:13652
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    File URL: https://mpra.ub.uni-muenchen.de/13652/1/MPRA_paper_13652.pdf
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    References listed on IDEAS

    as
    1. Nicola Giocoli, 2005. "The escape from conjectural variations: the consistency condition in duopoly theory from Bowley to Fellner," Cambridge Journal of Economics, Cambridge Political Economy Society, vol. 29(4), pages 601-618, July.
    2. Nicola Giocoli, 2003. "“Conjecturizing” Cournot: The Conjectural Variations Approach to Duopoly Theory," History of Political Economy, Duke University Press, vol. 35(2), pages 175-204, Summer.
    3. Wassily Leontief, 1936. "Stackelberg on Monopolistic Competition," Journal of Political Economy, University of Chicago Press, vol. 44(4), pages 554-554.
    4. Sonnenschein, Hugo, 1972. "Market Excess Demand Functions," Econometrica, Econometric Society, vol. 40(3), pages 549-563, May.
    5. Newbery, David M G & Stiglitz, Joseph E, 1982. "The Choice of Techniques and the Optimality of Market Equilibrium with Rational Expectations," Journal of Political Economy, University of Chicago Press, vol. 90(2), pages 223-246, April.
    6. R. F. Harrod, 1934. "Doctrines of Imperfect Competition," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 48(3), pages 442-470.
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    More about this item

    Keywords

    indeterminancy; conjectural variation; Walrasian general equilibrium; uncertainty; Sonnenshein-Mantel-Debreu; asymmetric information; post-autistic economics;
    All these keywords.

    JEL classification:

    • D5 - Microeconomics - - General Equilibrium and Disequilibrium
    • D43 - Microeconomics - - Market Structure, Pricing, and Design - - - Oligopoly and Other Forms of Market Imperfection

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