A CURVATURE CONDITION ENSURING UNIQUENESS OF COURNOT EQUILIBRIUM, WITH APPLICATIONS TO COMPARATIVE STATICS

Authors
SCHLEE EE
Citation
Ee. Schlee, A CURVATURE CONDITION ENSURING UNIQUENESS OF COURNOT EQUILIBRIUM, WITH APPLICATIONS TO COMPARATIVE STATICS, Economics letters, 41(1), 1993, pp. 29-33
Citations number
10
Categorie Soggetti
Economics
Journal title
Economics letters → ACNP
ISSN journal
01651765
Volume
41
Issue
1
Year of publication
1993
Pages
29 - 33
Database
ISI
SICI code
0165-1765(1993)41:1<29:ACCEUO>2.0.ZU;2-N
Abstract
We study a curvature condition on demands that, with a cost assumption , ensures the uniqueness of Cournot equilibrium. For two firms, the co ndition is that industry marginal revenue rises no faster than price f alls. The condition is weaker with more firms, and holds for any smoot h demand curve, provided there are enough firms.