Search results for " Sylos postulate"

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The Sylos Postulate reconsidered

2016

This chapter makes a textual comparison between the 1957 2nd Italian edition and the 1962 1st American edition of Oligopoly and Technical Progress, showing that Sylos Labini added to the later edition some fresh sections concerning new firms’ entry and incumbents’ reaction which partially contradict Modigliani’s 1958 presentation of the Sylos Postulate. The theoretical differences between Sylos Labini and Modigliani with regard to the assumption of constant output are traced back to their different modelling strategies on how to tackle the issue of external firms’ conjectures in determining the long-run oligopoly equilibrium price.

Settore SECS-P/04 - Storia Del Pensiero EconomicoBain-Sylos Labini-Modigliani model Sylos Postulate oligopoly theory entry modelling strategySettore SECS-P/01 - Economia Politica
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Paolo Sylos Labini Vindicated

2017

In the first part of our chapter we critically discuss i) Modigliani’s 1958 interpretation of Sylos Labini’s Oligopolio e Progresso Tecnico (1957), ii) the following debate concerning the Sylos Postulate −the assumption according to which “potential entrants behave as though they expected existing firms to adopt the policy most unfavourable to them, namely, the policy of maintaining output while reducing the price (or accepting reductions) to the extent required to enforce such an output policy” − and iii) the incumbent’s choice of productive capacity to install as strategic entry deterrence. In the second part of the chapter we develop a model in which, as in Dixit (1980), there are three …

Settore SECS-P/04 - Storia Del Pensiero Economicooligopoly theory Sylos postulate Cournot competition Bertrand competition strategic entry deterrence mixed strategies equilibriumSettore SECS-P/01 - Economia Politica
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