Indeterminacy of Cournot–Walras equilibrium with incomplete markets

Artikel

This paper studies a sole proprietorship economy with imperfect competition in a transferable utility setting. While consumers behave as price takers, producers issue real assets strategically to maximize their own utility. Even when complete markets are technologically feasible, equilibria with incomplete markets are robust, and they appear in large numbers: There is a continuum of equilibria with different asset spans that can be welfare-ranked. This real indeterminacy does not vanish as the number of producers goes to infinity. Therefore, the self-interest of producers restricts economic outcomes but does not determine them.

Angaben zum Objekt

• Sprache: Englisch

Verweise und Beziehungen

• Erschienen in: Journal: Economic Theory ; ISSN: 1432-0479 ; Volume: 71 ; Year: 2020 ; Issue: 1 ; Pages: 81-114 ; Berlin, Heidelberg: Springer

Klassifikation und Themen

• Klassifikation: Wirtschaft ; Market Structure, Pricing, and Design: Oligopoly and Other Forms of Market Imperfection ; Exchange and Production Economies ; Incomplete Markets
• Thema: Incomplete markets with production ; Imperfect competition ; Discontinuous games ; Real indeterminacy ; Endogenously incomplete markets

Beteiligte, Orts- und Zeitangaben

• Ereignis: Geistige Schöpfung
• (wer): Zierhut, Michael
• Ereignis: Veröffentlichung
• (wer): Springer
• (wo): Berlin, Heidelberg
• (wann): 2020

Weitere Informationen

• DOI: doi:10.1007/s00199-020-01248-2
• Letzte Aktualisierung: 10.03.2025, 11:43 MEZ