Sommerfelt Ervik, Inger and Soegaard, Christian (2013) Optimal resource allocation in General Cournot-competitive equilibrium. Working Paper. Coventry, UK: University of Warwick, Department of Economics. Warwick economics research papers series (TWERPS), Volume 2013 (Number 1010).

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Abstract

Conventional economic theory stipulates that output in Cournot competition is too low relative to that which is attained in perfect competition. We revisit this result in a General Cournot-competitive Equilibrium model with two industries that differ only in terms of productivity. We show that in general equilibrium, the more efficient industry produces too little and the less efficient industry produces too much compared to an optimal scenario with perfect competition.

Item Type:	Working or Discussion Paper (Working Paper)
Subjects:	H Social Sciences > HB Economic Theory
Divisions:	Faculty of Social Sciences > Economics
Library of Congress Subject Headings (LCSH):	Economics -- Mathematical models, Equilibrium (Economics), Cournot, A. A. (Antoine Augustin), 1801-1877, Industrial policy
Series Name:	Warwick economics research papers series (TWERPS)
Publisher:	University of Warwick, Department of Economics
Place of Publication:	Coventry, UK
Official Date:	19 June 2013
Dates:	Date Event 19 June 2013 Published
Volume:	Volume 2013
Number:	Number 1010
Number of Pages:	7
Institution:	University of Warwick
Status:	Not Peer Reviewed
Access rights to Published version:	Open Access

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