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Essential of Cournot oligopoly model

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Date Issued:
1993
Summary:
This thesis examines as well as compares four essential issues of the Cournot oligopoly model--existence, uniqueness, and stability of the equilibrium solution, and the competitive property of the model. A Cournot equilibrium solution exists for the market when the marginal revenue of each firm declines due to an output expansion by all other firms. The existing Cournot solution is unique when a non-zero Jacobian determinant of the marginal profit functions exist. The equilibrium solution is stable when two conditions are simultaneously satisfied: (i) each firm's marginal cost does not fall faster than the market demand curve, and (ii) on the aggregate the marginal profit of the firms decreases as all the firms expand their outputs. The existence, uniqueness, and stability are necessary properties for the Cournot equilibrium solution to become quasi-competitive. However, the Cournot solution will converge towards the competitive solution only in absence of economies of scale. These results have an important policy implication that, allowing entry into an oligopolistic market will improve the market performance.
Title: Essential of Cournot oligopoly model.
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Name(s): Mahzabeen, Ishrat.
Florida Atlantic University, Degree grantor
Hung, Chao-shun, Thesis advisor
College of Business
Department of Economics
Type of Resource: text
Genre: Electronic Thesis Or Dissertation
Issuance: monographic
Date Issued: 1993
Publisher: Florida Atlantic University
Place of Publication: Boca Raton, Fla.
Physical Form: application/pdf
Extent: 87 p.
Language(s): English
Summary: This thesis examines as well as compares four essential issues of the Cournot oligopoly model--existence, uniqueness, and stability of the equilibrium solution, and the competitive property of the model. A Cournot equilibrium solution exists for the market when the marginal revenue of each firm declines due to an output expansion by all other firms. The existing Cournot solution is unique when a non-zero Jacobian determinant of the marginal profit functions exist. The equilibrium solution is stable when two conditions are simultaneously satisfied: (i) each firm's marginal cost does not fall faster than the market demand curve, and (ii) on the aggregate the marginal profit of the firms decreases as all the firms expand their outputs. The existence, uniqueness, and stability are necessary properties for the Cournot equilibrium solution to become quasi-competitive. However, the Cournot solution will converge towards the competitive solution only in absence of economies of scale. These results have an important policy implication that, allowing entry into an oligopolistic market will improve the market performance.
Identifier: 14979 (digitool), FADT14979 (IID), fau:11758 (fedora)
Collection: FAU Electronic Theses and Dissertations Collection
Note(s): College of Business
Thesis (M.A.)--Florida Atlantic University, 1993.
Subject(s): Cournot, A A--(Antoine Augustin),--1801-1877--Researches into the mathematical principles of the theory of wealth
Economics--Mathematical models
Oligopolies
Held by: Florida Atlantic University Libraries
Persistent Link to This Record: http://purl.flvc.org/fcla/dt/14979
Sublocation: Digital Library
Use and Reproduction: Copyright © is held by the author, with permission granted to Florida Atlantic University to digitize, archive and distribute this item for non-profit research and educational purposes. Any reuse of this item in excess of fair use or other copyright exemptions requires permission of the copyright holder.
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Host Institution: FAU
Is Part of Series: Florida Atlantic University Digital Library Collections.