Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/77479
Authors: 
Ewerhart, Christian
Year of Publication: 
2013
Series/Report no.: 
Working Paper Series, Department of Economics, University of Zurich 16
Abstract: 
Biconcavity is a simple condition on inverse demand that corresponds to the ordinary concept of concavity after simultaneous parameterized transformations of price and quantity. The notion is employed here in the framework of the homogeneous-good Cournot model with potentially heterogeneous firms. The analysis leads to unified conditions, respectively, for the existence of a pure-strategy equilibrium via nonincreasing best-response selections, for existence via quasiconcavity, and for uniqueness of the equilibrium. The usefulness of the generalizations is illustrated in cases where inverse demand is either nearly linear or isoelastic. It is also shown that commonly made assumptions regarding large outputs are often redundant.
Subjects: 
Cournot games
existence and uniqueness of a pure-strategy Nash equilibrium
generalized concavity
supermodularity
JEL: 
C72
L13
C62
Persistent Identifier of the first edition: 
Document Type: 
Working Paper

Files in This Item:
File
Size
397.27 kB





Items in EconStor are protected by copyright, with all rights reserved, unless otherwise indicated.