Search results for "Competitive equilibrium"
showing 7 items of 7 documents
Multi-product firms and product variety
2008
The goal of this paper is to study the role of multi-product firms in the market provision of product variety. The analysis is conducted using the spokes model of non-localized competition proposed by Chen and Riordan (2007). Firstly, we show that multi-product firms are at a competitive disadvantage vis-a-vis single-product firms and can only emerge if economies of scope are sufficiently strong. Secondly, under duopoly product variety may be higher or lower with respect to both the first best and the monopolistically competitive equilibrium. However, within a relevant range of parameter values duopolists drastically restrict their product range in order to relax price competition, and as a…
Multiplicity, Overtaking and Convergence in the Lucas Two-Sector Growth Model
2002
This paper provides the complete closed-form solution to the Lucas two-sector model of endogenous growth. We study the issues of existence, unique-ness, multiplicity, positivity, transitional dynamics and long-run growth, re-lated to the competitive equilibrium paths. We identify the parameter range where the different results hold and deduce the entire trajectories for the original variables. We revise the results on convergence and overtaking which arise from this model, and prove that the parameterization currently used as the background for an explanation of economic miracles and disasters, is not satisfactory because of its counterintuitive implications.
A theory of spatial general equilibrium in a fuzzy economy
1984
Let an economic space be characterized by the existence of a given distribution of locations, i.e. consumers' residential locations and producers' plants. It is equipped with a system of prices. The economy is fuzzy because the economic behaviors of agents are imprecise. In this context, spatial partial equilibria theories are applications of a fuzzy economic calculation model. The aim of the present paper is to study the conditions which must be fulfilled in order that the compatibility of consumers' equilibria and producers' equilibria be verified. Mathematical tools are Butnariu's theorems which extend the Brouwer's and Kakutani's theorems to the cases of fuzzy functions and fuzzy point-…
Pension Schemes and Falling Birth-Rates: Change in Customs or Microeconomic Optimization?
2004
In this paper, we develop an overlapping generations model where fertility is endogenous. The utility of the parents is a function of the number of their children, and each child implies two types of fixed costs: the financial cost and the cost in terms of time. A "pay-as-you-go" pension scheme introduces an externality in that the number of children will be fewer than optimal because their favorable impact on the level of pension income is not taken into account. First, we define the competitive equilibrium dynamics and the steady state. This allows comparisons with the optimal stationary state, a notion which generalizes the golden rule. Two instruments, pensions and child benefits, are n…
Les followers ont-ils vraiment de l'importance dans le modèle de Stackelberg?
2011
In this paper, we consider a T-stage linear model of Stackelberg oligopoly. First, we show geometrically and analytically that under the two conditions of linear market demand and identical constant marginal costs, the T-stage Stackelberg model reduces to a model where T oligopolies exploit residual demand sequentially. At any stage, leaders behave as if followers did not matter. Second, we study social welfare and convergence toward competitive equilibrium. Especially, we consider the velocity of convergence as the number of firms increases. The convergence is faster when reallocating firms from the most to the less populated cohort until equalizing the size of all cohorts.
Bazaar economics
2015
Competitive Equilibrium theory has been a widely accepted and extensively used cornerstone in economics for over a century. Here, we suggest a complementary model—motivated by the haggling in a bazaar—that offers a useful, first-principle account of market behavior that better accounts for the observed outcomes in forty market experiments. The Bazaar model uses simple stochastic processes to drive the matching of traders and the determination of price. We show that as agents become more impatient, the system tends toward more Competitive-Equilibrium-like outcomes.
Existence of competitive equilibrium in a non-optimal one-sector economy without conditions on the distorted marginal product of capital
2012
Abstract This paper develops a method for proving the existence of competitive equilibrium in a distorted/non-optimal one-sector economy–a discrete time variant of the Romer model–without conditions on the equilibrium value of the marginal product of capital. Existence is obtained under weaker conditions than in Le Van et al. (2002) . Moreover, we provide an existence result for an economy with a regressive tax studied in Santos (2002) . The proofs rely on ideas of Becker and Boyd (1997) .