Cournot oligopoly with "almost" identical convex costs
Nikolai S. Kukushkin
Abstract
Open-access reader
Nikolai S. Kukushkin
Abstract
Open-access reader
M. McManus has shown that a Cournot equilibrium among identical quantity-setting firms with a convex cost function always exists, whatever the inverse demand function. Here the result is extended in two directions: Firstly, the firms may differ in their production capacity. Secondly, the theorem remains valid for a discrete version of the Cournot model where all the outputs are integers.
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M. McManus has shown that a Cournot equilibrium among identical quantity-setting firms with a convex cost function always exists, whatever the inverse demand function. Here the result is extended in two directions: Firstly, the firms may differ in their production capacity. Secondly, the theorem remains valid for a discrete version of the Cournot model where all the outputs are integers.
Key concepts: Cournot competition, Inverse demand function, Oligopoly, Function (biology), Regular polygon, Convex function, Production (economics), Mathematical economics