6533b7defe1ef96bd1275ca0
RESEARCH PRODUCT
Stackelberg-Walras and Cournot-Walras equilibria in mixed markets: a comparison
Ludovic A. Juliensubject
General equilibrium theoryPartial equilibriumCournot competition[SHS.ECO]Humanities and Social Sciences/Economics and FinanceMicroeconomicsStackelberg-WalrasMarket exchangeBest responseStackelberg competitionEconomics[ SHS.ECO ] Humanities and Social Sciences/Economies and finances[SHS.ECO] Humanities and Social Sciences/Economics and FinanceMathematical economicsComputingMilieux_MISCELLANEOUSCournot-Walrasdescription
In this note, we compare two strategic general equilibrium concepts: the Stackelberg-Walras equilibrium and the Cournot-Walras equilibrium. We thus consider a market exchange economy embodying atoms and a continuum of traders. It is shown that, when the preferences of the small traders are represented by Cobb-Douglas utility functions, the Stackel-berg-Walras and the Cournot-Walras equilibria can coincide only if 1) the endowments and preferences of atoms are identical and 2) the elasticity of the followers’ best response functions are equal to zero in equilibrium.
| year | journal | country | edition | language |
|---|---|---|---|---|
| 2012-01-01 |