Equilibrium Uniqueness in a Cournot Model with Demand Uncertainty

If Cournot oligopolists face uncertainty about the intercept of a linear demand function and if the realized market price must be non-negative, then expected demand becomes convex, which can create a multiplicity of equilibria. This note shows that if the distribution of the demand intercept has a monotone hazard rate and if another, rather weak, assumption is satisfied, then uniqueness of equilibrium is guaranteed.

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Year of publication:	2006
Authors:	Lagerlöf, Johan N.M.
Published in:	Topics in Theoretical Economics. - De Gruyter, ISSN 1534-598X, ZDB-ID 2040053-6. - Vol. 6.2006, 1
Publisher:	De Gruyter
Subject:	Cournot model \| non-negativity constraint \| demand uncertainty \| unique equilibrium

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Type of publication:	Article
Type of publication (narrower categories):	research-article
Language:	English
Other identifiers:	10.2202/1534-598X.1333 [DOI]
Source:	Other ZBW resources

Persistent link: https://www.econbiz.de/10014589091