Cournot equilibrium without apology: Existence and the Cournot inverse demand function
Isabel Grilo, Jean‐François Mertens
Abstract
Isabel Grilo, Jean‐François Mertens
Abstract
In a multi-commodity framework with absence of wealth effects, we prove the existence of equilibrium for Cournot oligopoly, and that the concept is completely non-ambiguous. We also obtain a uniquely defined endogenous inverse demand function, depending only on the competitive sector.
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In a multi-commodity framework with absence of wealth effects, we prove the existence of equilibrium for Cournot oligopoly, and that the concept is completely non-ambiguous. We also obtain a uniquely defined endogenous inverse demand function, depending only on the competitive sector.
Key concepts: Cournot competition, Inverse demand function, Economics, Demand curve, Commodity, Function (biology), Oligopoly, Inverse