Non-Cooperative Asymptotic Oligopoly in Economies with Infinitely Many Commodities

In this paper, we extend the non-cooperative analysis of oligopoly to exchange economies with innitely many commodities by using strategic market games. This setting can be in- terpreted as a model of oligopoly with dierentiated commodities by using the Hotelling line. We prove the existence of an \active" Cournot-Nash equilibrium and show that, when traders are replicated, the price vector and the allocation converge to the Wal- ras equilibrium. We examine how the notion of oligopoly extends to our setting with a coutable innity of commodities by distinguishing between asymptotic oligopolists and asymptotic price-takers. We illustrate these notions via a number of examples.