Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/72318
Authors: 
Neary, J. Peter
Year of Publication: 
2002
Series/Report no.: 
Working Paper Series, UCD Centre for Economic Research 02/22
Abstract: 
I review previous approaches to modelling oligopoly in general equilibrium, and propose a new view which in principle overcomes their deficiencies: modelling firms as large in their own market but small in the economy as a whole. Implementing this approach requires a tractable specification of preferences. Dixit-Stiglitz preferences (which imply iso-elastic perceived demand functions) could be used, but continuum-quadratic preferences (which imply linear perceived demand functions) are more convenient. To illustrate their usefulness, I construct a simple closed-economy model of oligopoly in general equilibrium and derive some surprising implications for competition policy.
Subjects: 
competition policy
Dixit-Stiglitz preferences
general equilibrium
GOLE (General Oligopolistic Equilibrium)
oligopoly
JEL: 
D50
L13
L40
Persistent Identifier of the first edition: 
Document Type: 
Working Paper

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