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Editor: Universidad Carlos III de Madrid. Departamento de Economía

Issued date: 2007-02

ISSN: 2340-5031

Serie-No.: UC3M Working papers. Economics07-03

Keywords: Oligopoly , Incomplete information , Bayesian , Cournot , Equilibrium , Existence , Uniqueness

Rights: Atribución-NoComercial-SinDerivadas 3.0 España

Abstract:We show that even in very simple oligopolies with differential information a (Bayesian) Cournotequilibrium in pure strategies may not exist, or be unique. However, we find sufficient conditions forexistence, and for uniqueness, of Cournot equilibrium in a We show that even in very simple oligopolies with differential information a (Bayesian) Cournotequilibrium in pure strategies may not exist, or be unique. However, we find sufficient conditions forexistence, and for uniqueness, of Cournot equilibrium in a certain class of industries. More general resultsarise when negative prices are allowed.+-





Author: Einy, Ezra; Haimanko, Ori; Moreno, Diego; Shitovitz, Benyamin

Source: http://e-archivo.uc3m.es


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Universidad Carlos III de Madrid Repositorio institucional e-Archivo http:--e-archivo.uc3m.es Departamento de Economía DE - Working Papers.
Economics.
WE 2007-02 On the existence of Bayesian Cournot equilibrium Einy, Ezra http:--hdl.handle.net-10016-663 Descargado de e-Archivo, repositorio institucional de la Universidad Carlos III de Madrid Working Paper 07-06 Economic Series 03 February 2007 Departamento de Economía Universidad Carlos III de Madrid Calle Madrid, 126 28903 Getafe (Spain) Fax (34-91) 6249875 ON THE EXISTENCE OF BAYESIAN COURNOT EQUILIBRIUM∗ 1 Ezra Einy , Ori Haimanko 2 , Diego Moreno 3 and Benyamin Shitovitz 4 Abstract We show that even in very simple oligopolies with differential information a (Bayesian) Cournot equilibrium in pure strategies may not exist, or be unique.
However, we find sufficient conditions for existence, and for uniqueness, of Cournot equilibrium in a certain class of industries.
More general results arise when negative prices are allowed. Keywords: Oligopoly, Incomplete Information, Bayesian, Cournot, Equilibrium, Existence, Uniqueness. JEL Classification: C72, D43, L13. ∗ We gratefully acknowledge financial support of the Spanish Ministry of Education, grant SEJ200407861. 1 Department of Economics, Ben-Gurion University of the Negev, Beer Sheva 84105, Israel.
E-mail: einy@bgu.ac.il 2 Department of Economics, Ben-Gurion University of the Negev, Beer Sheva 84105, Israel.
E-mail: orih@bgu.ac.il 3 Departamento de Economia, Universidad Carlos III de Madrid, 28903 Getafe, Spain.
E-mail: dmoreno@eco.uc3m.es 4 Department of Economics, University of Haifa, Haifa 31905, Israel.
E-mail: binya@econ.haifa.ac.il 1 Introduction The Cournot model is widely used in studies of imperfectly competitive industries. Its standard version, which is concerned with the case of …rms producing a homogeneous good with complete information about demand and production costs, has been extensively studied.
However, in the past ...





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