Local stability of the Cournot solution with increasing heterogeneous competitors

Fabio Tramontana; A Elsadany; B Xin; H. Agiza

doi:10.1016/j.nonrwa.2015.05.005

Local stability of the Cournot solution with increasing heterogeneous competitors

Fabio Tramontana^*, A Elsadany, B Xin, H. Agiza

^*Autore corrispondente per questo lavoro

Facoltà di Economia

Risultato della ricerca: Contributo in rivista › Articolo › peer review

39 Citazioni (Scopus)

Abstract

In this paper we try to solve a paradox related to the results of Theocharis (1960). When the number of competitors increases the Cournot–Nash equilibrium loses stability. We relax the assumption about homogeneity in the decision mechanism and show that if we admit heterogeneity than by increasing the number of competitors the stability region on the parameters’ space may enlarge instead of shrinking.

Lingua originale	Inglese
pagine (da-a)	150-160
Numero di pagine	11
Rivista	Nonlinear Analysis: Real World Applications
Volume	26
Numero di pubblicazione	N/A
DOI	https://doi.org/10.1016/j.nonrwa.2015.05.005
Stato di pubblicazione	Pubblicato - 2015

All Science Journal Classification (ASJC) codes

Analisi
Ingegneria Generale
Economia, Econometria e Finanza Generali
Matematica Computazionale
Matematica Applicata

Keywords

Cournot oligopoly
Heterogeneous firms
Isoelastic demand function
Nash equilibrium

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10.1016/j.nonrwa.2015.05.005

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author = "Fabio Tramontana and A Elsadany and B Xin and H. Agiza",

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AU - Tramontana, Fabio

AU - Elsadany, A

AU - Xin, B

AU - Agiza, H.

PY - 2015

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AB - In this paper we try to solve a paradox related to the results of Theocharis (1960). When the number of competitors increases the Cournot–Nash equilibrium loses stability. We relax the assumption about homogeneity in the decision mechanism and show that if we admit heterogeneity than by increasing the number of competitors the stability region on the parameters’ space may enlarge instead of shrinking.

KW - Cournot oligopoly

KW - Heterogeneous firms

KW - Isoelastic demand function

KW - Nash equilibrium

KW - Cournot oligopoly

KW - Heterogeneous firms

KW - Isoelastic demand function

KW - Nash equilibrium

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JO - Nonlinear Analysis: Real World Applications

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Local stability of the Cournot solution with increasing heterogeneous competitors

Abstract

All Science Journal Classification (ASJC) codes

Keywords

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