Busetto, Francesca, Codognato, Giulio and Ghosal, Sayantan (2008) Noncooperative oligopoly in markets with a continuum of traders. Working Paper. Coventry: University of Warwick, Department of Economics. (Warwick economic research papers). (Unpublished)

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Abstract

In this paper, we study three prototypical models of noncooperative oligopoly in markets with a continuum of traders : the model of Cournot-Walras equilibrium of Codognato and Gabszewicz (1991), the model of Cournot-Nash equilibrium of Lloyd S. Shapley, and the model of Cournot-Walras equilibrium of Busetto et al. (2008). We argue that these models are all distinct and only the Shapley's model with a continuum of traders and atoms gives an endogenous explanation of the perfectly and imperfectly competitive behavior of agents in a one-stage setting. For this model, we prove a theorem of existence of a Cournot-Nash equilibrium.

Item Type:	Working or Discussion Paper (Working Paper)
Subjects:	H Social Sciences > HD Industries. Land use. Labor
Divisions:	Faculty of Social Sciences > Economics
Library of Congress Subject Headings (LCSH):	Oligopolies, Competition, Imperfect, Noncooperative games (Mathematics), Stock exchanges
Series Name:	Warwick economic research papers
Publisher:	University of Warwick, Department of Economics
Place of Publication:	Coventry
Date:	September 2008
Number:	No.866
Number of Pages:	32
Status:	Not Peer Reviewed
Publication Status:	Unpublished
Access rights to Published version:	Open Access
Related URLs:	Related item in WRAP
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URI:	http://wrap.warwick.ac.uk/id/eprint/1350

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