OPTIMAL RESOURCE ALLOCATION IN GENERAL COURNOTCOMPETITIVE EQUILIBRIUM

Conventional economic theory stipulates that output in Cournot competition is too low relative to that which is attained in perfect competition. We revisit this result in a General Cournot-competitive Equilibrium model with two industries that dier only in terms of productivity. We show that in general equilibrium, the more ecient industry produces too little and the less ecient industry produces too much compared to an optimal scenario with perfect competition.

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Year of publication:	2013-06-20
Authors:	Ervik, Inger Sommerfelt ; Soegaard, Christian
Institutions:	Institutt for Økonomi, Universitetet i Bergen
Subject:	Cournot oligopoly \| GOLE (General Oligopolistic Equilibrium) \| industrial policy

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Extent:	application/pdf
Series:	Working Papers in Economics.
Type of publication:	Book / Working Paper
Notes:	The text is part of a series Working Papers in Economics Number 05/13 9 pages
Classification:	D50 - General Equilibrium and Disequilibrium. General ; H21 - Efficiency; Optimal Taxation ; L13 - Oligopoly and Other Imperfect Markets
Source:	RePEc - Research Papers in Economics

Persistent link: https://www.econbiz.de/10010818941