www.coalitiontheory.net
Published on www.coalitiontheory.net (http://coalitiontheory.net)

Home > Imperfect competition à la Negishi, also with fixed costs

Imperfect competition à la Negishi, also with fixed costs

Article
Author/s: 
Pierre Dehez, Jacques H. Drèze and Takashi Suzuki
Journal of Mathematical Economics
Issue number: 
1-3
Publisher: 
Elsevier
Year: 
2003
Journal pages: 
219–237
Webpage [1]
The paper studies equilibria for economies with imperfect competition and non-convex technologies. Following Negishi, firms maximise profits under downward-sloping perceived demand functions. Negishi’s assumptions, in particular the assumption of a single monopolistic competitor in each market, are relaxed. Existence of equilibria is obtained, under otherwise standard assumptions, for productions sets defined in each firm by the union of a convex technology and a technology subject to fixed costs. In the light of a counterexample, it is assumed that fixed factors are distinct from variable factors. Technically, the proof rests on pricing rules.

Source URL:http://coalitiontheory.net/content/imperfect-competition-%C3%A0-la-negishi-also-fixed-costs

Links
[1] http://www.sciencedirect.com/science/article/pii/S0304406803000405