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Three Models of Noncooperative Oligopoly in Markets with a Continuum of Traders*

Published online by Cambridge University Press:  09 January 2015

Francesca Busetto ,
Giulio Codognato  and
Sayantan Ghosal
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Summary

In this paper, we reconstruct the main developments of the theory of noncooperative oligopoly in general equilibrium, by focusing on the analysis of three prototypical models for pure exchange economies: the model of Cournot-Walras equilibrium of Codognato and Gabszewicz (1991); the model of Cournot-Nash equilibrium originally proposed by Lloyd S. Shapley and known as window model; the model of Cournot-Walras equilibrium of Busetto et al. (2008). We establish, in a systematic way, the relationship between the three notions of equilibrium proposed in these models and the notion of Walras equilibrium. Then, we investigate the relationships among those three notions of equilibrium.

Cet article propose une reconstruction de la théorie de l'oligopole en équilibre général en univers non coopératif. Trois types de modèles en échange pur sont étudiés : le modèle de Cournot-Walras analysé dans Codognato et Gabszewicz (1991) ; le modèle de jeu de marché à la Cournot-Nash proposé initialement par Shapley ; et le modèle de Cournot-Walras étudié par Busetto et al. (2008). Nous établissons la relation qui existe entre les équilibres de ces trois modèles avec l'équilibre concurrentiel walrassien. Ensuite, nous analysons les relations entre les trois équilibres stratégiques associés à ces trois modèles.

Keywords

Noncooperative oligopolyCournot-Walras equilibriaCournot-Nash equilibria.C72D51oligopole non coopératiféquilibre de Cournot-Walraséquilibre de Cournot-NashC72D51
Type
Research Article
Information
Recherches Économiques de Louvain/ Louvain Economic Review , Volume 79 , Issue 4 , December 2013 , pp. 15 - 32
Copyright
Copyright © Université catholique de Louvain, Institut de recherches économiques et sociales 2013 

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Footnotes

*

We would like to thank an anonymous referee for his comments and suggestions. Francesca Busetto and Giulio Codognato gratefully acknowledge financial support from MIUR (PRIN 20103S5RN3).

†

Dipartimento di Scienze Economiche e Statistiche, Università degli Studi di Udine, Via Tomadlni 30, 33100 Udine, Italy.

‡

Dipartimento di Scienze Economiche e Statistiche, Università degli Studi di Udine, ViaTomadini 30, 33100 Udine, Italy, and EconomiX, Université de Paris Ouest Nanterre la Défense, 200 Avenue de la République, 92001 Nanterre Cedex, France.

§

Department of Economics, University of Warwick, Coventry CV4 7AL, United Kingdom.

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