Pavlopoulos, Antonios (2012): Contributions to oligopoly theory.
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In the context of the Cournot model a demand function parameter is treated as the dual of the firm’s profit. Following the demand theory’s duality approach it’s possible to introduce the concept of the compensated reaction function (or compensated best-response function), as well as the concepts of net strategic complementarity/substitutability. The firm’s reaction function is analysed into a type-1 and a type-2 effect, which are the counterparts, respectively, of the demand theory substitution and income effects. Further, new results are obtained regarding Cournot equilibrium in the case of profit functions which are homogeneous in their arguments.
|Item Type:||MPRA Paper|
|Original Title:||Contributions to oligopoly theory|
|Keywords:||Cournot model; compensated reaction function; net strategic complementarity/substitutability|
|Subjects:||L - Industrial Organization > L1 - Market Structure, Firm Strategy, and Market Performance > L13 - Oligopoly and Other Imperfect Markets
D - Microeconomics > D4 - Market Structure and Pricing > D43 - Oligopoly and Other Forms of Market Imperfection
|Depositing User:||Antonios Pavlopoulos|
|Date Deposited:||10. Mar 2012 15:07|
|Last Modified:||12. Feb 2013 22:01|
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